British Pound May have Made a Lasting Low
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GBPUSD– Retail forex traders remain heavily long the British Pound versus the US Dollar, and typically we would treat this as a contrarian signal that price is likely to continue lower. Yet a recent GBP/USD bounce has been met with aggressive selling; signs suggest the tide may be turning.
Ideally we would see sentiment pull back further before completely shifting away from our long-standing bearish trading bias. We’ll keep a close eye on the next moves in both price and crowd positioning.
See next currency section: USDCAD - Canadian Dollar Likely to Gain further versus US Dollar
--- 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.