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GBPUSD – The British Pound is finally showing signs of turnaround as a key reversal price pattern and shift in sentiment points to further short-term gains.
Trade Implications – GBPUSD: Last week we cited extremely one-sided retail FX trader positioning as a key reason the Sterling would continue lower—open long positions outnumbered those short by 2 to 1. Yet long positions have tumbled by nearly 30 percent while short positions are barely changed.
It is clearly early, but a noteworthy reversal pattern and a shift in sentiment suggests the GBP could bounce further through near-term trading.
See next currency section: USDJPY - Japanese Yen Remains in Control versus US Dollar
--- Written by David Rodriguez, Quantitative Strategist for DailyFX.com
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