British Pound Expected to Continue Bigger Decline
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GBPUSD - The ratio of long to short positions in the GBPUSD stands at 1.76 as 64% of traders are long. Yesterday the ratio was 1.50; 60% of open positions were long. Long positions are 5.3% lower than yesterday and 27.8% below levels seen last week. Short positions are 19.2% lower than yesterday and 24.7% above levels seen last week. Open interest is 10.9% lower than yesterday and 11.1% below its monthly average.
We use our SSI as a contrarian indicator to price action, and the fact that the majority of traders are long gives signal that the GBPUSD may continue lower. The trading crowd has grown further net-long from yesterday but moderated since last week. The combination of current sentiment and recent changes gives a further mixed trading bias.