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GBPUSD –Consistent crowd buying gives a strong contrarian signal that the British Pound may continue lower against the high-flying US Dollar.
Trade Implications – GBPUSD: Approximately 2/3rds of the traders in our sample are currently long the GBPUSD—the highest such ratio since the pair last traded below $1.60 through mid-October. It is entirely possible that heavily one-sided sentiment may in fact favor a short-term correction higher. Yet we will remain focused on GBP weakness and USD gains until we see a material shift in crowd positions.
See next currency section:USDJPY – US Dollar Forecast to Rally further versus Yen
— Written by David Rodriguez, Quantitative Strategist for DailyFX.com
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