British Pound Refuses to Turn Lower - Here's What We’re Watching
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Trade Implications – GBPUSD: As with the Euro, we believe that such one-sided sentiment favors a near-term GBPUSD top. Our sentiment-based trading strategies have done especially well buying GBP as crowds sell, and our Momentum2 could catch a major turning point if they suddenly go in the opposite direction.
The data itself shows the dangers of trying to time a major price reversal; crowds have been short since the GBP crossed above $1.52 in August. We’ll need to see evidence of a turn before joining them.
--- 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.