GBPUSD – Forex trading crowds remain aggressively net-long the British Pound against the US Dollar, giving us contrarian signal that the pair may continue trading lower.
The ratio of long to short positions in the GBPUSD stands at 1.80 as nearly 64% of traders are long. Yesterday, the ratio was at 3.22 as 76% of open positions were long. In detail, long positions are 26.5% lower than yesterday and 32.7% weaker since last week. Short positions are 31.8% higher than yesterday and 4.9% weaker since last week.
It’s important to note that long positions have pulled back overnight, but the fact that traders remain aggressively net-long gives signal that the GBPUSD may continue lower.
How do we interpret the SSI? Watch an FXCM Expo Presentation that explains the SSI.
--- Written by David Rodriguez, Quantitative Strategist for DailyFX.com
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