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
Automate our SSI-based trading strategies via Mirror Trader free of charge
To receive the Speculative Sentiment Index and other reports from this author via e-mail, sign up for his distribution list via this link.
Contact David via
Twitter at http://www.twitter.com/DRodriguezFX
Facebook at http://www.Facebook.com/DRodriguezFX
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.