British Pound May Have Set Major Top and Here’s Why
GBPUSD – Forex trading crowds were recently their most short British Pound against the US Dollar since the pair topped at $1.6250 in September, 2012, and the recent pullback suggests this is another major turn.
Trade Implications – GBPUSD: Our sentiment-based trading strategies have done quite well buying into British Pound advances, but both our Momentum2 and Breakout2 systems have now closed long positions. Fairly clear signs of a sentiment extreme and a technical turnaround leave us on high alert, and indeed we’ll next look to Momentum2 trading system to go short as our trade signal.
--- Written by David Rodriguez, Quantitative Strategist for DailyFX.com
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