British Pound Remains in Clear Downtrend
Receive the Weekly Speculative Sentiment Index report via PDF via David’s e-mail distribution list.
GBPUSD – The ratio of long to short positions in the GBPUSD stands at 1.61 as 62% of traders are long. Yesterday the ratio was 1.25; 56% of open positions were long. Long positions are 10.3% higher than yesterday and 23.7% below levels seen last week. Short positions are 14.0% lower than yesterday and 7.2% above levels seen last week. Open interest is 0.5% lower than yesterday and 30.5% below its monthly average. We use our SSI as a contrarian indicator to price action, and the fact that the majority of traders are long gives signal that the GBPUSD may continue lower. The trading crowd has grown further net-long from yesterday but moderated since last week. The combination of current sentiment and recent changes gives a further mixed trading bias.
See next currency section:USDJPY - Japanese Yen Sticks to Consolidation Pattern
--- Written by David Rodriguez, Quantitative Strategist for DailyFX.com
Automate our SSI-based trading strategies via Mirror Trader free of charge
To receive the Speculative Sentiment Index and other reports from this author via e-mail, sign up for his distribution list via this link.
Contact David via
Twitter at http://www.twitter.com/DRodriguezFX
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.