British Pound Forecast to Hit Fresh Lows
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GBPUSD – Retail forex traders remain aggressively long the British Pound versus the US Dollar, and a contrarian view of crowd sentiment leaves us firmly in favor of selling into GBP/USD declines. Indeed, the total number of open retail long positions in our sample is at its highest in 10 months and net-positioning is its most extreme since the GBP traded to $1.46 in April.
Such aggressively one-sided sentiment leaves us with little reason to abandon our contrarian bias towards selling into British Pound weakness.
See next currency section: USDJPY - US Dollar at Risk versus Yen, but Losses Far from Guaranteed
--- Written by David Rodriguez, Quantitative Strategist for DailyFX.com
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DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.