Positioning Data Leaves us in Favor of buying British Pound
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GBPUSD –The ratio of long to short positions in the GBPUSD stands at 1.06 as 51% of traders are long. Yesterday the ratio was -1.19; 46% of open positions were long. Long positions are 8.7% higher than yesterday and 3.2% below levels seen last week. Short positions are 13.7% lower than yesterday and 7.7% below levels seen last week. Open interest is 3.5% lower than yesterday and 0.6% 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. The trading crowd has flipped from net-short to net-long from yesterday but unchanged since last week. The combination of current sentiment and recent changes gives a further mixed trading bias.
See next currency section:USDJPY - Traders Buying USDJPY as it Sticks to Large Range
--- Written by David Rodriguez, Quantitative Strategist for DailyFX.com
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