British Pound Trend Points Lower, but Near-Term Relief Possible
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GBPUSD - The ratio of long to short positions in the GBPUSD stands at 1.22 as 55% of traders are long. Yesterday the ratio was 1.27; 56% of open positions were long. Long positions are 4.8% lower than yesterday and 22.6% below levels seen last week. Short positions are 1.1% lower than yesterday and 34.6% above levels seen last week. Open interest is 3.2% lower than yesterday and 5.6% 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 less net-long from yesterday and last week. The combination of current sentiment and recent changes gives a further mixed trading bias.
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