British Pound Offers Attractive Opportunity to Sell
Trade Implications – GBPUSD: Our sentiment-based trading strategies have done especially well buying GBP as crowds sell, but future performance could suffer as our data shows most traders have done well in low-volatility conditions.
We would rather play the probabilities here: forex volatility prices are near year-to-date lows, and we put low odds on a major GBPUSD break higher. This runs counter to our typical view of retail trader sentiment, but we prefer joining the crowd and selling against the GBPUSD highs.
--- 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.