GBPUSD – Forex crowds have sharply scaled back their GBPUSD short positions, warning that the British Pound may have set an important short-term top. The ratio of long to short positions in the GBPUSD stands at -1.28 as nearly 56% of traders are short. This is roughly unchanged from last week as long positions have fallen 17.2% and short positions down 12.3%.
Near-neutral sentiment suggests that the British Pound may continue trading within a fairly narrow trading range. Yet the sharp turn from recent highs leaves our overall bias to the downside. Short-term support remains at recent congestion lows near $1.5650 and a break would target subsequent congestion levels at $1.55.
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--- Written by David Rodriguez, Quantitative Strategist for DailyFX.com
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