Tanalys

British Pound Looks to Trade to Fresh Lows

ssi_gbp-usd_body_Picture_10.png, British Pound Looks to Trade to Fresh Lows

Receive the Weekly Speculative Sentiment Index report via PDF via David’s e-mail distribution list.

GBPUSDRetail forex crowds remain short the GBPUSD—normally enough to keep us bearish. Yet positioning has moderated sharply from last week, and one of our sentiment-based trading strategies has recently sold into GBP weakness.

Trade Implications – GBPUSD: We pointed out last week that there was risk of an important GBPUSD top as it traded near key resistance, and confirmation would come if our Momentum2 strategy were to sell. Indeed, the system has now gone short from $1.6048, and our Senior Technical Strategist points out that a GBPUSD close below $1.5893 would confirm a double-top.

Written by David Rodriguez, Quantitative Strategist for DailyFX.com

Automate our SSI-based trading strategies via Mirror Trader free of charge

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

Exit mobile version