We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site.

Free Trading Guides
EUR/USD
Bullish
GBP/USD
Mixed
USD/JPY
Bearish
Gold
Bullish
Oil - US Crude
Mixed
Bitcoin
Mixed
More View more
Real Time News
  • LIVE IN 30 MIN: Join Senior Currency Strategist @CVecchioFX as he reviews key event risk in the week ahead and help strategize how to approach FX markets. Register here: https://www.dailyfx.com/webinars/390818203?utm_source=Twitter&utm_medium=DFXGeneric&utm_campaign=twr
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Ripple are long at 97.90%, while traders in US 500 are at opposite extremes with 77.47%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/BZpmb8E27U
  • LIVE NOW: Join Analyst @nickcawley1 as he discusses the outlook for UK financial markets in the week ahead! Register here: https://www.dailyfx.com/webinars/614330707?utm_source=Twitter&utm_medium=DFXGeneric&utm_campaign=twr
  • Tune in to @CVecchioFX 's #webinar at 7:30 AM ET/12:30 AM GMT to prepare for major event risk in the week ahead. Register here: https://t.co/QscMCDP1ud https://t.co/KJpPdsyeGn
  • Commodities Update: As of 11:00, these are your best and worst performers based on the London trading schedule: Silver: 0.22% Gold: 0.22% Oil - US Crude: -0.89% View the performance of all markets via https://www.dailyfx.com/forex-rates#commodities https://t.co/64XxgDkWYe
  • Fear the steepeners https://t.co/fEfBdKDfYR
  • Forex Update: As of 11:00, these are your best and worst performers based on the London trading schedule: 🇬🇧GBP: 0.29% 🇯🇵JPY: 0.12% 🇪🇺EUR: 0.11% 🇨🇦CAD: -0.05% 🇳🇿NZD: -0.18% 🇦🇺AUD: -0.28% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/s12V6FC6jq
  • Indices Update: As of 11:00, these are your best and worst performers based on the London trading schedule: US 500: -0.02% Wall Street: -0.02% Germany 30: -0.06% France 40: -0.11% View the performance of all markets via https://www.dailyfx.com/forex-rates#indices https://t.co/G9ieYqoCfz
  • LIVE IN 30 MIN: Join Analyst @nickcawley1 as he discusses the outlook for UK financial markets in the week ahead! Register here: https://www.dailyfx.com/webinars/614330707?utm_source=Twitter&utm_medium=DFXGeneric&utm_campaign=twr
  • #DidYouKnow a #Doji candlestick signals market indecision and the potential for a change in direction. What are the top five types of Doji candlesticks? Find out: https://t.co/c51s3IBcEu https://t.co/5KBXSdj8OD
British Pound Likely to Trade Lower

British Pound Likely to Trade Lower

2016-02-11 17:30:00
David Rodriguez, Head of Business Development
Share:
British Pound Likely to Trade Lower

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

GBPUSD – A recent shift in retail forex trader sentiment suggests that the British Pound may have set an important near-term top through recent price action. Last week we noted the opposite—a sharp turn in crowd positions favored GBP/USD gains. Clearly that call was late, and when the facts change we need to change with them.

Our data shows there are currently 1.9 open GBP/USD-long positions for every one that is short, and a contrarian view of crowd sentiment favors further declines. Indeed, this represents a substantive shift from just eight days ago when the same ratio was 1.2:1. If everyone is buying, we typically look to do the opposite and sell. The clear caveat is that there is risk the GBP/USD will instead stick to a tight range. Until sentiment shifts once again, however, the big-picture view remains bearish.

See next currency section:USDCAD - Canadian Dollar Hits the Skids, Losses Likely

--- Written by David Rodriguez, Quantitative Strategist for DailyFX.com

To receive the Speculative Sentiment Index and other reports from this author via e-mail, sign up for his distribution list via this link.

Contact David via

Twitter at http://www.twitter.com/DRodriguezFX

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

DISCLOSURES

News & Analysis at your fingertips.