British Pound Forecast Calls for Continued Weakness
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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
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DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.