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British Pound Forecast to Continue Declines versus USD

British Pound Forecast to Continue Declines versus USD

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GBPUSDRetail FX traders remain net-long the British Pound since it traded below $1.65 in early September, and until that changes we will maintain our contrarian call for further GBP weakness.

Trade Implications – GBPUSD: A noteworthy shift in positions since last week moderates our GBP-bearish trading bias somewhat; total long positions have fallen 15 percent while short positions are up 20 percent. Yet that leaves the balance at approximately 60 percent long. Until we see a lasting shift we’ll sell Sterling bounces.

See next currency section:USDJPY – Yen is Clearly Oversold, but we expect further Weakness

Written by David Rodriguez, Quantitative Strategist for DailyFX.com

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