British Pound Rallies Offer Short Opportunities
GBPUSD – Retail FX traders remain long the British Pound against the US Dollar (ticker: USDOLLAR), but recent GBPUSD consolidation has produced similarly sideways moves in crowd sentiment and positioning. Crowds remain near their most net-long GBPUSD since the pair last traded towards multi-year lows at $1.53. Yet long interest has fallen 19 percent since last week.
Trade Implications – GBPUSD: Our sentiment-based trading strategies have closed their British Pound short positions. They will once again sell if and when we see a build in crowd long positions and a break lower.
--- Written by David Rodriguez, Quantitative Strategist for DailyFX.com
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DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.