British Pound Sentiment Briefly Switches Direction, but Downtrend Intact

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GBPUSD - The ratio of long to short positions in the GBPUSD stands at 1.33 as 57% of traders are long. Yesterday the ratio was 1.15; 53% of open positions were long. Long positions are 6.5% higher than yesterday and 5.9% above levels seen last week. Short positions are 8.1% lower than yesterday and 6.3% below levels seen last week. Open interest is 0.3% lower than yesterday and 17.5% 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.