British Pound Forecast to Trade Softly Higher Through June
Retail forex speculators remain almost exactly flat the British Pound against the US Dollar (ticker: USDOLLAR), giving us no real short-term trading bias on the GBPUSD. In fact positioning is almost exactly unchanged since last week—an especially rare occurrence that highlights choppy trading in the British Pound.
Given a broader long-term US Dollar uptrend, we would argue that any major British Pound strength against the Greenback should likely be sold. Yet we see little justification for a fresh short-term position amidst neutral retail sentiment. Currencies tend to make their highs and lows at the beginning and end of the month. Such seasonal forex tendencies suggest July could offer an opportunity to once again sell the GBPUSD.
How do we interpret and trade with 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 firstname.lastname@example.org; 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.