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British Pound Trading Outlook Sees Big Change

ssi_gbp-usd_body_Picture_14.png, British Pound Trading Outlook Sees Big Change

GBPUSD – Forex retail crowds have sold aggressively into recent GBPUSD gains, and the sudden shift in sentiment gives us pause in our calls for British Pound weakness.

Trade Implications – GBPUSD: Our sentiment-based trading strategies have recently gone long the GBP as crowds go in the opposite direction—an important shift from just seven days ago. Indeed, our SSI data shows that total retail short positions jumped 20 percent week-over-week, and current sentiment readings favor a test of key GBP resistance through near-term trading.

Written by David Rodriguez, Quantitative Strategist for DailyFX.com

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