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British Pound Forecast Calls for Strength

ssi_gbp-usd_body_Picture_15.png, British Pound Forecast Calls for Strength

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GBPUSDRetail forex crowds continue selling into British Pound strength, and a contrarian view of crowd sentiment leaves us steadily in favor of GBPUSD gains.

Trade Implications – GBPUSD: Our purely sentiment-based Momentum2 strategy most recently bought the GBPUSD from $1.6083 only to get stopped out at a modest loss.

A further build in retail short positions means that the strategy is likely to go long once more. A clear caveat is that a failure in the $1.6115-1.6160 range would suggest that the overall British Pound rally is complete.

Written by David Rodriguez, Quantitative Strategist for DailyFX.com

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