British Pound Forecast Flips - We Favor GBPUSD Losses
GBPUSD – What a reversal—in both price and positioning. Last week I highlighted that retail traders were their most short GBPUSD since December. Now they’re long, and our contrarian view of sentiment leaves us bearish.
Trade Implications – GBPUSD: I was obviously wrong in calling for continued US Dollar weakness and GBPUSD strength, but I’ll take solace in the fact that our Momentum2/”Tidal Shift” strategy took a surprisingly small loss and has since gone short from $1.5587. The substantial Dollar reversal makes a GBPUSD short attractive.
--- 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.