British Pound Remains a Sell versus the Dollar

DailyFX.com -

British Pound Remains a Sell versus the Dollar

Receive the Weekly Speculative Sentiment Index report via PDF via David’s e-mail distribution list.

GBPUSD –The FX trading crowd has remained steadily long the British Pound versus the US Dollar, and such consistent positions leave us focused on further Sterling weakness.

Trade Implications – GBPUSD: Our retail FX trader sample has remained steadily long the British Pound since it pair traded below $1.6900. It is certainly worth noting that long interest has fallen to its lowest levels since the GBPUSD failed to trade above $1.70 in July. And yet until we see a more substantial shift in sentiment we see little reason to abandon our long-standing bearish trading bias.

A sustained flip towards crowd selling would help confirm a potentially important GBPUSD price low. And indeed a GBPUSD break above key trendline resistance favors a larger correction higher.

See next currency section:USDJPY - USD Looks like a Buy versus the Yen

--- Written by David Rodriguez, Quantitative Strategist for DailyFX.com

British Pound Remains a Sell versus the Dollar

Automate our SSI-based trading strategies via Mirror Trader free of charge

To receive the Speculative Sentiment Index and other reports from this author via e-mail, sign up for his distribution list via this link.

Contact David via

Twitter at http://www.twitter.com/DRodriguezFX

original source

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.
Learn forex trading with a free practice account and trading charts from FXCM.