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GBPUSD – A substantial shift in forex trader positions warns that the British Pound may soon trade higher versus the US Dollar.
Trade Implications – GBPUSD: Traders have punished the British currency on clear uncertainty ahead of the Scottish referendum vote, but in pricing out the real risks we believe the decline is overdone. Moreover the recent swing in crowd sentiment warns of exhaustion, and it already seems as though the GBP may close the gap established over the weekend and trade above $1.6320. Such a move would help confirm the fact that the Sterling likely set a short-term low and leave us looking for further gains.
See next currency section:USDJPY - US Dollar Remains in Clear Uptrend versus Japanese Yen
--- Written by David Rodriguez, Quantitative Strategist for DailyFX.com
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