British Pound Likely to Hit Fresh Highs
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GBPUSD - The ratio of long to short positions in the GBPUSD stands at -1.55 as 39% of traders are long. Yesterday the ratio was -1.43; 41% of open positions were long. Long positions are 1.5% lower than yesterday and 8.8% below levels seen last week. Short positions are 6.7% higher than yesterday and 41.9% above levels seen last week. Open interest is 3.3% higher than yesterday and 8.5% above 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 grown further net-short from yesterday but unchanged since last week. The combination of current sentiment and recent changes gives a further bullish trading bias.
See next currency section: USDJPY - US Dollar at Risk of Further Declines versus Yen
--- Written by David Rodriguez, Quantitative Strategist for DailyFX.com
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DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.