GBPUSD – Forex trading crowds remain long the British Pound versus the US Dollar (ticker: USDOLLAR), but long interest continues to decline while short positioning grows. The fact that retail traders remain net-long leaves our overall bearish bias intact, and indeed we favor British Pound short positions as long as price remains below the pair’s June high at $1.56.
Our proprietary sentiment-based trading strategies have nonetheless gone long GBPUSD on the build in short interest. The long position could succeed if price remains above key support at $1.5400, but our broader preference remains to sell any major GBPUSD rallies (and buy US Dollar dips).
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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