More Strength in Forecast for British Pound
GBPUSD - The ratio of long to short positions in the GBPUSD stands at -2.02 as 33% of traders are long. Yesterday the ratio was -1.79; 36% of open positions were long. Long positions are 8.1% lower than yesterday and 1.2% above levels seen last week. Short positions are 3.8% higher than yesterday and 7.1% above levels seen last week. Open interest is 0.5% lower than yesterday and 13.3% above its monthly average.
We use our SSI as a contrarian indicator to price action, and the fact that the majority of traders are short gives signal that the GBPUSD may continue higher. The trading crowd has grown further net-short from yesterday and last week. The combination of current sentiment and recent changes gives a further bullish trading bias.
--- Written by Christopher Vecchio, Currency Analyst
To contact Christopher Vecchio, e-mail firstname.lastname@example.org
Follow him on Twitter at @CVecchioFX
To be added to Christopher’s e-mail distribution list, please fill out this form
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.