Why and how do we use the SSI in trading? View our video and download the free indicator here
GBPUSD– Retail FX traders have sold into the British Pound’s break higher versus the US Dollar, and a contrarian view of ‘crowd’ sentiment points to further GBP/USD gains. The key difficulty is that continued GBP failure near critical resistance of $1.3480-$1.3500 would keep the broader downtrend intact.
Going against the crowd means we prefer being long the GBP/USD, but we would ideally see a daily close above this key price ceiling before advocating for fresh long positions. Else we see distinct risk the British Pound will remain in a relatively narrow trading range versus the US Dollar through low-volatility market conditions.
See next currency section: USDJPY - US Dollar Remains a Sell versus Japanese Yen
--- Written by David Rodriguez, Senior Strategist for DailyFX.com
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