British Pound Uptrend at Risk against the Dollar
GBPUSD - An important week-over-week shift in British Pound retail positioning warns that the GBPUSD uptrend is at risk. Last week there were more than 2 traders short GBPUSD for every one long, and indeed crowds have remained net-short GBP as the pair crossed above $1.57 in early August. Yet short interest has fallen nearly 22 percent since last week, while longs have surged 43 percent.
If crowds indeed turn net-long GBPUSD, we would take that as clear contrarian signal for further losses. Important technical price levels to watch are at $1.59 and $1.6050.
--- Written by David Rodriguez, Quantitative Strategist for DailyFX.com
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