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GBPUSD – A substantial shift in crowd sentiment suggests that the British Pound may have set a lasting top versus the resurgent US Dollar.
Trade Implications – GBPUSD: The trading crowd remains net-short GBP, but a surge in buying leaves total long interest at its highest since the pair traded near $1.53 in July of last year.
We typically trade against the crowd, and the fact that they’re bought heavily leaves us in favor of further weakness. A break of 6-month GBPUSD trendline support warns that further declines are likely. Prominent support is at $1.6560, while nearby resistance is at $1.6814.
See next currency section:USDJPY - Dollar Offers Trading Opportunities versus Yen
--- Written by David Rodriguez, Quantitative Strategist for DailyFX.com
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