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British Pound Forecast to Continue Lower

British Pound Forecast to Continue Lower

David Rodriguez, Head of Product

Why and how do we use the SSI in trading? View our video and download the free indicator here

GBPUSD–Retail forex traders continue to buy aggressively into British Pound weakness, and a contrarian view of popular sentiment leaves us firmly in favor of selling the GBP/USD.

Our data shows there are an impressive 2.8 open GBP/USD-long positions for every one short; 74 percent of positions are short. These one-sided sentiment readings have often coincided with important extremes and price reversals, but this is only clear in hindsight. Until we see a material shift towards GBP selling, we will continue to call for GBP/USD declines.

See next currency section: USDCAD - Forex Trader Sentiment Favors Further USDCAD Gains

--- 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.

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