British Pound Remains a Sell versus US Dollar
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GBPUSD - The ratio of long to short positions in the GBPUSD stands at 1.62 as 62% of traders are long. Yesterday the ratio was 1.96; 66% of open positions were long. Long positions are 16.6% lower than yesterday and 4.5% below levels seen last week. Short positions are 1.0% higher than yesterday and 16.0% below levels seen last week. Open interest is 10.6% lower than yesterday and 7.8% above 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 further long since last week. The combination of current sentiment and recent changes gives a further mixed trading bias.
See next currency section: USDJPY - US Dollar’s Next Step versus Japanese Yen is Uncertain
--- Written by David Rodriguez, Quantitative Strategist for DailyFX.com
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