British Pound Outlook Remains Bearish
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GBPUSD –Retail FX trading crowds remain long the British Pound versus the US Dollar, and a contrarian view of crowd sentiment points to further GBPUSD losses.
The ratio of long to short positions in the GBPUSD stands at 1.46 as 59% of traders are long. Yesterday the ratio was 1.36; 58% of open positions were long. Long positions are 0.1% lower than yesterday and 16.5% below levels seen last week. Short positions are 7.1% lower than yesterday and 8.6% above levels seen last week. Open interest is 3.1% lower than yesterday and 7.7% 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.
See next currency section: USDJPY - One-sided Sentiment Points to Dollar Weakness, Yen Strength
--- Written by David Rodriguez, Quantitative Strategist for DailyFX.com
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