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Sentiment-Based Strategies Buy GBPUSD on Risk of Bounce

Sentiment-Based Strategies Buy GBPUSD on Risk of Bounce

David Rodriguez, Head of Product
ssi_gbp-usd_body_Picture_15.png, Sentiment-Based Strategies Buy GBPUSD on Risk of Bounce

GBPUSD – Retail forex traders remain aggressively long the British Pound against the US Dollar, and our sentiment-based trading strategies have mostly sold into GBPUSD weakness.

Trade Implications – GBPUSD: Our trend-following Momentum2 strategy has most recently gone long the GBP from $1.4918 on an early sign of a trend shift. Yet we can’t wholeheartedly advocate such a position if retail crowds remain aggressively bullish; our SSI shows that there are currently more than two traders short for every long. There is noticeable risk of further GBPUSD bounces, but we’ll need to see a larger push higher before switching tack.

--- Written by David Rodriguez, Quantitative Strategist for DailyFX.com

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ssi_gbp-usd_body_1a_1.png, Sentiment-Based Strategies Buy GBPUSD on Risk of Bounce

View how to automate the high-volatility Breakout2 Trading System via our previous article and webinar recording.

Auto trade the trend reversal-trading Momentum2system via our previous article and webinar recording.

Trade with strong trends via our Momentum1 Trading System and view an archived webinar

Use our counter-trend Range2 Trading system and view an archived webinar guide on automation

New to FX markets? Learn more in our video trading guide.

Contact David via

Twitter at http://www.twitter.com/DRodriguezFX

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DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

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