Skip to Content
News & Analysis at your fingertips.

We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site. See our updated Privacy Policy here.



Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events


Economic Calendar

Economic Calendar Events

Free Trading Guides
Please try again
More View More
British Pound Likely to Fall, but Caution Advised

British Pound Likely to Fall, but Caution Advised

David Rodriguez, Head of Product

Why and how do we use the SSI in trading? View our video and download the free indicator here

GBPUSD– Retail FX traders continue to buy into British Pound weakness versus the US Dollar, and a contrarian view of ‘crowd’ sentiment warns that further GBP/USD losses are likely. From a risk-to-reward perspective, however, we see key reasons for why traders might wait to sell the British Pound. Namely: extremely stretched positioning warns of the potential for sharp near-term rallies.

Of course sentiment extremes are only clear in hindsight, and we may ourselves wait for a substantive turn in retail FX trader sentiment to call for a larger GBP bounce.

See next currency section: USDJPY - Forex Sentiment Turns on a Dime - Watch Key Yen Risk

--- Written by David Rodriguez, Senior Strategist for

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

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.