News & Analysis at your fingertips.

We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site. See our updated Privacy Policy here.

0

Notifications

Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events

0

Economic Calendar

Economic Calendar Events

0
Free Trading Guides
Subscribe
Please try again
More View more
British Pound Offers Range Trading Nirvana

British Pound Offers Range Trading Nirvana

David Rodriguez, Head of Product
ssi_gbp-usd_body_Picture_8.png, British Pound Offers Range Trading Nirvana

GBPUSD – Forex trading crowds have been quick to flip directions on the British Pound/US Dollar pair as of late, giving us a mixed bias on the range-bound currency pair. Our SSI ratio currently stands at -1.2; there are 1.2 traders short for every one long. It is certainly worth noting that this is a substantial shift from last week; long interest jumped 37% while shorts fell 33%. Yet we would ideally see stronger conviction before taking a strong GBPUSD trading bias.

Major price congestion levels mark support near $1.5650, while resistance stands at recent highs of $1.5880. A break of either would likely point to further rallies or declines. In the meantime, however, we favor trading GBPUSD ranges and placing stops above highs and below the lows.

How do we interpret the SSI? Watch an FXCM Expo Presentation that explains the SSI.

--- Written by David Rodriguez, Quantitative Strategist for DailyFX.com

To receive the SSI via e-mail and other reports from author David Rodríguez, e-mail subject line “Distribution List” to drodriguez@dailyfx.com

Contact David via Twitter at http://www.twitter.com/DRodriguezFX

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

DISCLOSURES