FOREX ANALYSIS: British Pound May Fall Further
GBPUSD – Retail forex traders continue buying aggressively into British Pound weakness versus the US Dollar (ticker: USDOLLAR), and a contrarian view of crowd sentiment leaves us in favor of further GBPUSD losses.
Our proprietary Speculative Sentiment Index data shows that there was an increase of 57 percent of traders who had turned long the British Pound against the US Dollar, while short interest has fallen 16 percent. The combination was enough to leave retail sentiment at its most bullish GBPUSD since August.
Our British Pound price targets to the downside are near, but we remain bearish the GBPUSD until we see a shift in retail trader sentiment.
--- Written by David Rodriguez, Quantitative Strategist for DailyFX.com
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