British Pound Forecast Neutralizes as Shorts Cut amid Rally
GBPUSD - The ratio of long to short positions in the GBPUSD stands at 1.67 as 63% of traders are long. Yesterday the ratio was 1.88; 65% of open positions were long. Long positions are 4.7% lower than yesterday and 20.9% below levels seen last week. Short positions are 7.3% higher than yesterday and 20.8% above levels seen last week. Open interest is 0.5% lower than yesterday and 1.9% 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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