FOREX ANALYSIS: British Pound at Potential Sentiment Extreme
GBPUSD – Retail FX traders are now their most aggressively net-short the British Pound against the US Dollar (ticker: USDOLLAR) since it last traded at $1.63 in May, and our contrarian trading strategies have continued to buy into GBPUSD gains.
There is always risk that such one-sided sentiment may represent an important sentiment extreme and potential turning point. Yet major tops or bottoms are only clear in hindsight, and indeed the British Pound’s break above key resistance leaves further highs as near-term targets.
--- Written by David Rodriguez, Quantitative Strategist for DailyFX.com
To receive the Speculative Sentiment Index and other reports from this author via e-mail, sign up for his distribution list via this link.
New to FX markets? Learn more in our video trading guide.
Contact David via
Twitter at http://www.twitter.com/DRodriguezFX
Facebook at http://www.Facebook.com/DRodriguezFX
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.