FOREX ANALYSIS: British Pound Sentiment Warns of Further Weakness
GBPUSD – Retail FX traders have scaled back their British Pound short positions against the US Dollar (ticker: USDOLLAR), and the noteworthy shift in sentiment warns that the pair may have seen an important failure at $1.63. Last week we highlighted the fact that crowds were at their most net-short GBPUSD since the pair last tested the key range high, but long positions have since surged 37 percent while shorts are down 24 percent.
We see further risk of GBPUSD declines as crowds buy into weakness.
--- Written by David Rodriguez, Quantitative Strategist for DailyFX.com
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