British Pound at Risk for Further Declines
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GBPUSD–A sharp decline in the British Pound has been met with similarly aggressive retail FX trader buying, and a contrarian view of crowd sentiment leaves us calling for GBP/USD declines.
Our data shows there are currently 1.6 open positions long the GBP/USD for every one that is short—matching extremes seen through the early-December GBP decline into $1.49.
As long as crowds continue to buy, we will watch for further GBP weakness.
See next currency section: USDCAD - Forex Traders Most Short the USD/CAD Since 2011
--- 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.