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GBPUSD –An aggressive shift in retail forex trader sentiment warns that the British Pound remains likely to hit further lows versus the US Dollar.
Trade Implications – GBPUSD: Last week we warned that increasingly one-sided sentiment suggested GBP losses would slow. And yet the Sterling has continued sharply lower as crowd positions have hit further extremes.
Our sample of retail FX traders shows there are currently two open short positions for every long—its most one-sided since the GBPUSD traded below $1.65 in early September. Until this changes we see little choice but to watch for further Sterling weakness.
See next currency section:USDJPY – US Dollar Looks to Gain Further versus Japanese Yen
— Written by David Rodriguez, Quantitative Strategist for DailyFX.com
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