Crowds Continue Buying Aggressively into Sterling Weakness
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GBPUSD –The ratio of long to short positions in the GBPUSD stands at 2.32 as 70% of traders are long. Yesterday the ratio was 1.03; 51% of open positions were long. Long positions are 59.8% higher than yesterday and 48.1% above levels seen last week. Short positions are 28.8% lower than yesterday and 11.4% below levels seen last week. Open interest is 16.2% higher than yesterday and 15.8% 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 - Choppy USDJPY Price Action Makes Next Move Unclear
--- Written by David Rodriguez, Quantitative Strategist for DailyFX.com
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