British Pound Targets Fresh Highs
GBPUSD – Forex trading crowds remain aggressively bearish the British Pound against the US Dollar, giving us a similarly strong contrarian signal that the pair may continue to fresh highs. The fact that the GBPUSD crossed above key congestion and 200-day Simple Moving Average highs of $1.5900 is significant in and of itself. Yet we are further encouraged as broader US Dollar bears. The British Pound’s relative outperformance supports the bullish case.
Our SSI shows the number of traders short outnumber those long by 2.08 to 1. This represents an important shift as shorts are 10% above levels seen last week while longs have fallen 20%. We target fresh highs in the GBPUSD through upcoming trade.
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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