British Pound Forecast Less Clear as Trading Crowds Sell
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GBPUSD - The ratio of long to short positions in the GBPUSD stands at 1.24 as 55% of traders are long. Yesterday the ratio was -1.07; 48% of open positions were long. Long positions are 13.0% higher than yesterday and 4.1% below levels seen last week. Short positions are 14.9% lower than yesterday and 14.0% above levels seen last week. Open interest is 1.4% lower than yesterday and 3.5% above its monthly average. We use our SSI as a contrarian indicator to price action, and the fact that the majority of traders are long gives signal that the GBPUSD may continue lower. The trading crowd has flipped from net-short to net-long 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 - US Dollar Outlook Clouded versus Japanese Yen
--- Written by David Rodriguez, Quantitative Strategist for DailyFX.com
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