British Pound Forecast Depends on how it Finishes the Week
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GBPUSD - The ratio of long to short positions in the GBPUSD stands at -1.14 as 47% of traders are long—effectively unchanged from yesterday. Long positions are 3.3% lower than yesterday and 17.2% above levels seen last week. Short positions are 0.7% lower than yesterday and 9.6% below levels seen last week. Open interest is 1.9% lower than yesterday and 2.4% 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 moderated since last week. The combination of current sentiment and recent changes gives a further mixed trading bias, and its next move will be critical in determining whether it remains in its multi-month uptrend.
See next currency section: USDJPY - US Dollar Clings to Key Support versus Japanese Yen
--- Written by David Rodriguez, Quantitative Strategist for DailyFX.com
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