British Pound Forecast to Fall Further
Retail FX traders have bought aggressively into British Pound weakness against the (ticker: USDOLLAR), and one-sided sentiment gives consistent signal that the British Pound/US Dollar exchange rate may fall to fresh lows.
Our proprietary Speculative Sentiment Index data shows that approximately 60 percent of retail traders in our sample are currently long the GBPUSD. Indeed, the crowd has been consistently net-long British Pounds against the US Dollar since the pair first crossed below $1.60 in early May. Combined with evidence of a noteworthy GBPUSD top, we favor continued losses through upcoming trade.
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--- Written by David Rodriguez, Quantitative Strategist for DailyFX.com
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