British Pound Forecast Remains Bearish Despite Positioning Narrowing
GBPUSD - The ratio of long to short positions in the GBPUSD stands at 2.55 as 72% of traders are long. Yesterday the ratio was 2.50; 71% of open positions were long. Long positions are 0.8% higher than yesterday and 12.0% below levels seen last week. Short positions are 1.1% lower than yesterday and 4.4% above levels seen last week. Open interest is 0.2% higher than yesterday and 10.1% 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 grown further net-long from yesterday but moderated since last week. The combination of current sentiment and recent changes gives a further mixed trading bias.
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--- Written by Christopher Vecchio, Currency Strategist
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