GBPUSD – Forex trading crowds remain net-short the British Pound against the US Dollar, giving us contrarian signal that the pair could continue higher into the coming weeks.
The ratio of long to short positions in the GBPUSD stands at -1.18 as nearly 54% of traders are short. It’s important to note that this is a drop from yesterday as 65% of traders were short. Yet we see fairly significant risks that the US Dollar could continue to decline into the end of the year—giving us a bullish GBPUSD trading bias.
The noteworthy GBPUSD drop may represent a good buying opportunity against recent lows of 1.5570 and 1.5400.
How do we interpret the SSI? Watch an FXCM Expo Presentation that explains the SSI.
— Written by David Rodriguez, Quantitative Strategist for DailyFX.com
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