British Pound Forecast to Fall Further
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The ratio of long to short positions in the GBPUSD stands at 2.22 as 69% of traders are long. Yesterday the ratio was 1.82; 64% of open positions were long. Long positions are 10.9% higher than yesterday and 7.0% above levels seen last week. Short positions are 9.4% lower than yesterday and 16.8% below levels seen last week. Open interest is 3.7% higher than yesterday and 7.6% 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 and last week. The combination of current sentiment and recent changes gives a further bearish trading bias.
See next currency section: USDJPY - Retail FX Traders Send Mixed Signals on Yen
--- Written by David Rodriguez, Quantitative Strategist for DailyFX.com
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