British Pound Remains a Sell versus the Dollar
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Trade Implications – GBPUSD: Our retail FX trader sample has remained steadily long the British Pound since it pair traded below $1.6900. It is certainly worth noting that long interest has fallen to its lowest levels since the GBPUSD failed to trade above $1.70 in July. And yet until we see a more substantial shift in sentiment we see little reason to abandon our long-standing bearish trading bias.
A sustained flip towards crowd selling would help confirm a potentially important GBPUSD price low. And indeed a GBPUSD break above key trendline resistance favors a larger correction higher.
See next currency section:USDJPY - USD Looks like a Buy versus the Yen
--- 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.