GBPUSD – Forex trading crowds turned net-short the British Pound against the US Dollar when the pair traded near the $1.5450 mark, giving consistent contrarian signal that the pair could continue its advance. The ratio of long to short positions in the GBPUSD stands at -2.47 as 71% of traders are short. In fact, trading crowds continue selling as the number of traders short grew 12 percent overnight; long interest remained roughly unchanged.
When trading crowds are net-short and continue selling, we often see price continue higher and remain bullish the British Pound against the US Dollar.
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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