British Pound Forecast to Fall Further
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 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
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