This Indicator Called the British Pound Reversal - What Now?
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GBPUSD– A remarkable shift in retail FX trader sentiment helped confirm that the British Pound set a lasting low through last week, and a continued move in both price and sentiment points to further GBP/USD gains.
Current data shows there are 1.2 open long positions in the GBP/USD for every 1 short, and this represents a substantial change from the 3:1 seen just over a week ago. Indeed, total open short positions have surged 56 percent while longs have fallen 14 percent.
The severity of the GBP/USD rally along with the marked shift in trader positioning points to continued British Pound strength.
See next currency section:USDCAD - Canadian Dollar Rally is Set to Last
--- 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.