British Pound Declines May Slow, but Downtrend not Over Yet
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 positioning warns that the British Pound downtrend may slow or even reverse. In the past several weeks we’ve said almost the exact opposite--extremely one-sided trader sentiment pointed to GBP/USD losses. And yet a 30 percent jump in open GBP/USD-short positions marks an abrupt change in direction.
It’s early yet to call for an end to the clear GBP downtrend, but the sharp shift in retail trader positions suggests that price declines will at least slow through the near future.
See next currency section: AUDUSD- Australian Dollar Forecast to Hit Further Highs
--- 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.