Why and how do we use the SSI in trading? View our video and download the free indicator here
GBPUSD– Heavily one-sided retail FX trader positioning warns that the British Pound will likely continue to fall versus the US Dollar and other major counterparts. And indeed, we have said much of the same through the past two weeks as crowds buy aggressively into GBP/USD weakness.
Our data shows over two-thirds of open GBP/USD positions are long, and a contrarian view of crowd sentiment leaves us with a clear bearish trading bias. Only a marked shift in the opposite direction would negate our forecast for British Pound depreciation.
See next currency section: USDCAD - Canadian Dollar Unlikely to Trade Significantly Higher
--- 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