British Pound Likely to Lose Further versus US Dollar
Receive the Weekly Speculative Sentiment Index report via PDF via David’s e-mail distribution list.
The ratio of long to short positions in the GBPUSD stands at 1.93 as 66% of traders are long. Yesterday the ratio was 1.84; 65% of open positions were long. Long positions are 12.3% higher than yesterday and 6.7% above levels seen last week. Short positions are 7.3% higher than yesterday and 7.5% above levels seen last week. Open interest is 10.5% higher than yesterday and 12.6% 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 but moderated since last week.
See next currency section: USDJPY - Retail FX Traders Do Well as they Buy USDJPY Gains
--- 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.