Rebound Potential Limited as Crowd Maintains Net-Long GBP/USD
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GBPUSD - The ratio of long to short positions in the GBPUSD stands at 2.12 as 68% of traders are long. Yesterday the ratio was 2.26; 69% of open positions were long. Long positions are 5.8% lower than yesterday and 23.6% above levels seen last week. Short positions are 0.7% higher than yesterday and 6.6% below levels seen last week. Open interest is 3.8% lower than yesterday and 4.8% 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 less net-long from yesterday but further long since last week. The combination of current sentiment and recent changes gives a further mixed trading bias.
See next currency section: USD/CAD - Sentiment Remains Extremely One-Sided – and Wrong – in USD/CAD
--- Written by Christopher Vecchio, Currency Strategist
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