Crowds Remain Strongly Short British Pound
GBPUSD – Retail FX trading crowds remain their most net-short British Pound against the US Dollar (ticker: USDOLLAR) since it set a short-term top in late August, and indeed our sentiment-based strategies remain long GBPUSD in anticipation of further advances.
Our technical forecast for the British Pound calls for a test of key resistance near $1.6215, and indeed current price momentum favors further gains. It seems ill-advised to join retail crowds in selling the GBPUSD at these levels, as there are nearly 3 traders short for every one that is long.
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--- Written by David Rodriguez, Quantitative Strategist for DailyFX.com
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