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GBPUSD – Short interest in GBPUSD has skyrocketed after a sharp rally from below $1.6300 last week to the 2014 highs (and the highest level since May 2011) at 1.6670. The retail crowd is attempting to pick the top.
Trade Implications – GBPUSD: Retail FX traders have gone ‘all in’ on shorting the GBPUSD, with the SSI ratio diving to -8.26. That means there are 8.26 traders short for every 1 long. A break of the yearly high could result in a stop run/short covering rally as clearly the market is heavily tilted towards one side. Only once retail traders capitulate will the GBPUSD bullish bias ease.
Read more: GBP/USD Approaches 2014 High as GBP/AUD Breakout Begins
— Written by Christopher Vecchio, Currency Analyst
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