British Pound Forecast to Gain on Material Shift in Positions
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GBPUSD - The ratio of long to short positions in the GBPUSD stands at -1.45 as 41% of traders are long. Yesterday the ratio was -1.36; 42% of open positions were long. Long positions are 6.7% lower than yesterday and 19.9% below levels seen last week. Short positions are 0.4% lower than yesterday and 43.7% above levels seen last week. Open interest is 3.1% lower than yesterday and 5.7% 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 - Dollar May Lose Further versus Japanese Yen
--- Written by David Rodriguez, Quantitative Strategist for DailyFX.com
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