British Pound Forecast Depends on how it Finishes the Week

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British Pound Forecast Depends on how it Finishes the Week

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GBPUSD - The ratio of long to short positions in the GBPUSD stands at 1.13 as 53% of traders are long. Yesterday the ratio was 1.06; 51% of open positions were long. Long positions are 0.8% lower than yesterday and 8.7% above levels seen last week. Short positions are 7.4% lower than yesterday and 18.3% below levels seen last week. Open interest is 4.0% lower than yesterday and 3.2% 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 unchanged since last week. The combination of current sentiment and recent changes gives a further bearish trading bias, and the recent break below key support at $1.5650 further supports calls for weakness.

See next currency section:USDJPY - US Dollar Clings to Key Support versus Japanese Yen

--- Written by David Rodriguez, Quantitative Strategist for DailyFX.com

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