British Pound Remains in Clear Downtrend
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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
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