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Key Reason British Pound Might Head Higher

ssi_gbp-usd_body_Picture_10.png, Key Reason British Pound Might Head Higher

GBPUSD – Extremely one-sided forex trading crowd sentiment suggests that the British Pound may have set a noteworthy low, and indeed we see risks of a broader US Dollar pullback (GBPUSD bounce).

Trade Implications – GBPUSD: Past performance is not indicative of future results, but our Momentum2/”Tidal Shift” strategy has done well trading the GBPUSD through recent price action. That system remains short from $1.5100 and is floating a respectable profit. But we’re wary of jumping into fresh GBPUSD-short positions as there’s clear risk of a short-term sentiment extreme and a similarly significant GBPUSD bounce.

Written by David Rodriguez, Quantitative Strategist for DailyFX.com

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