British Pound Forecast Neutralized after Big Shift in Positioning
GBPUSD - The ratio of long to short positions in the GBPUSD stands at 1.73 as 63% of traders are long. Yesterday the ratio was 2.18; 69% of open positions were long. Long positions are 25.1% lower than yesterday and 28.6% below levels seen last week. Short positions are 5.9% lower than yesterday and 13.3% above levels seen last week. Open interest is 19.0% lower than yesterday and 9.7% below 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 and last week. The combination of current sentiment and recent changes gives a further mixed trading bias.
How do we interpret the SSI? Watch an FXCM Expo Presentation that explains the SSI.
--- Written by Christopher Vecchio, Currency Strategist
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