Critical to Watch British Pound at Key Lows
Why and how do we use the SSI in trading? View our video and download the free indicator here
GBPUSD– Retail FX traders have bought aggressively into recent British Pound losses versus the US Dollar, and a contrarian view of crowd sentiment points to further GBP/USD weakness. Yet retail traders will often do well in slow-moving and range-bound trading conditions. The fact that the British Pound remains stuck in a tight range suggests that traders could do well buying low and selling high.
We may need to see a major jump in FX market volatility to call for a much larger GBP/USD breakdown.
See next currency section: USDJPY - Japanese Yen Forecast to Rally until this Changes
--- 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.