British Pound Remains a ‘Sell’ versus the US Dollar
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GBPUSD - The ratio of long to short positions in the GBPUSD stands at 3.81 as 79% of traders are long. Yesterday the ratio was 2.36; 70% of open positions were long. Long positions are 26.1% higher than yesterday and 32.6% above levels seen last week. Short positions are 22.0% lower than yesterday and 12.2% below levels seen last week. Open interest is 11.8% higher than yesterday and 11.4% above 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 and last week. The combination of current sentiment and recent changes gives a further bearish trading bias.