News & Analysis at your fingertips.

We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site. See our updated Privacy Policy here.



Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events


Economic Calendar

Economic Calendar Events

Free Trading Guides
Please try again
More View more
British Pound May Strengthen Further

British Pound May Strengthen Further

David Rodriguez, Head of Product
ssi_gbp-usd_body_Picture_5.png, British Pound May Strengthen Further

Forex trading crowds recently turned net-short the British Pound against the US Dollar (ticker: USDOLLAR) for the first time since the pair traded towards $1.57, and the GBP stands to gain further against the suddenly-downtrodden US currency. We use our Speculative Sentiment Index readings of crowd positioning as a contrarian indicator; if most are selling we prefer to buy and vice versa.

Crowd long interest fell by a significant 32 percent overnight, while the number of orders short jumped by a similarly noteworthy 25 percent. Given our simultaneously bullish Euro/US Dollar forecast and technical calls for further British Pound gains, we believe that the GBPUSD may continue its recent rally in the coming week.

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

To receive the Speculative Sentiment Index and other reports from this author via e-mail, send a message with subject line “Distribution List” to; Contact David via Twitter at

Meet the DailyFX team in Las Vegas at the annual FXCM Traders Expo, November 2-4, 2012 at the Rio All Suite Hotel & Casino. For additional information regarding the schedule, workshops and accommodations, visit the FXCM Trading Expo website.

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.