British Pound Offers Range Trading
GBPUSD – Forex trading crowd sentiment remains quite near-neutral on the British Pound/US Dollar pair, effectively giving us a directionless short-term trading bias. Two weeks ago we claimed that the pair’s break above its 200-day Simple Moving Average pointed to further gains, but said breakout was clearly short-lived and price action proved us wrong.
When our SSI ratio is below 1.5 and above -1.5, our Congestion Opportunities strategy trades a simple overbought/oversold RSI strategy on any given pair. In other words, if the SSI is not at extremes it often points to sideways price action.
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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