British Pound Forecast to Trade Higher
Receive the Weekly Speculative Sentiment Index report via PDF via David’s e-mail distribution list.
GBPUSD - The ratio of long to short positions in the GBPUSD stands at -1.00 as 50% of traders are long. Yesterday the ratio was 1.13; 53% of open positions were long. Long positions are 8.9% lower than yesterday and 9.3% above levels seen last week. Short positions are 3.0% higher than yesterday and 14.4% below levels seen last week. Open interest is 3.3% lower than yesterday and 8.5% below its monthly average. We use our SSI as a contrarian indicator to price action, and the fact that the majority of traders are short gives signal that the GBPUSD may continue higher. The trading crowd has flipped from net-long to net-short 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 - Crowd Sentiment Points to USDJPY Weakness
--- Written by David Rodriguez, Quantitative Strategist for DailyFX.com
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
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.