GBPUSD – What a reversal—in both price and positioning. Last week I highlighted that retail traders were their most short GBPUSD since December. Now they’re long, and our contrarian view of sentiment leaves us bearish.
Trade Implications – GBPUSD: I was obviously wrong in calling for continued US Dollar weakness and GBPUSD strength, but I’ll take solace in the fact that our Momentum2/”Tidal Shift” strategy took a surprisingly small loss and has since gone short from $1.5587. The substantial Dollar reversal makes a GBPUSD short attractive.
— Written by David Rodriguez, Quantitative Strategist for DailyFX.com
Download all of our Sentiment-based trading strategies free via an ongoing promo on FXCMApps.com
To receive the Speculative Sentiment Index and other reports from this author via e-mail, sign up for his distribution list via this link.
Contact David via
Twitter at https://www.twitter.com/DRodriguezFX
Facebook at https://www.Facebook.com/DRodriguezFX