British Pound Declines May Slow, but Downtrend not Over Yet
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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
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DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.