British Pound Likely to Hit Fresh Highs
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 -1.55 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
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.