British Pound Outlook Neutral as Short Positions Ebb
GBPUSD - The ratio of long to short positions in the GBPUSD stands at 1.03 as 51% of traders are long. Yesterday the ratio was 1.11; 53% of open positions were long. Long positions are 0.3% lower than yesterday and 2.1% below levels seen last week. Short positions are 7.2% higher than yesterday and 33.1% below levels seen last week. Open interest is 3.3% higher than yesterday and 9.8% 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 grown less net-long from yesterday but unchanged since last week. The combination of current sentiment and recent changes gives a further mixed trading bias.
--- Written by Christopher Vecchio, Currency Strategist
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