British Pound Outlook Calls for Further Declines
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GBPUSD – Our retail forex trader data shows that the majority of traders remain long the British Pound versus the US Dollar, and a contrarian view of herd sentiment leaves us calling for price weakness. Last week we noted a substantive shift in the opposite direction as a warning that GBP/USD declines would slow, but we would need a much larger shift in order to call for a complete trend turnaround.
Total short interest remains roughly unchanged despite notable GBP gains in the past week of trading. The lack of crowd selling gives us little confidence the GBP/USD will continue onto fresh highs.
See next currency section: AUDUSD - Australian Dollar Outlook Unclear until this Changes
--- Written by David Rodriguez, Quantitative Strategist for DailyFX.com
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