British Pound Likely to Lose Further versus US Dollar
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GBPUSD - The ratio of long to short positions in the GBPUSD stands at 1.94 as 66% of traders are long. Yesterday the ratio was 1.84; 65% of open positions were long. Long positions are 9.1% higher than yesterday and 11.4% above levels seen last week. Short positions are 3.7% higher than yesterday and 4.0% below levels seen last week. Open interest is 7.2% higher than yesterday and 8.7% above 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 and last week.
The combination of current sentiment and recent changes gives a further bearish trading bias.
See next currency section:USDJPY - Crowds Sell Dollar versus Yen, Serves as Buy Signal
--- Written by David Rodriguez, Quantitative Strategist for DailyFX.com
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