British Pound Sees Nowhere to go but Down
GBPUSD – The British Pound continues to hit lows and retail forex trading crowds remain heavily net-long—we see plenty of room for further GBPUSD declines.
Trade Implications – GBPUSD: Last week we highlighted that retail traders were their most net-long GBP since it hit multi-year lows in March, and that warned that we could see a short-term bounce.
Yet our Speculative Sentiment Index (SSI) shows traders have not stopped buying, and indeed our Senior Technical Strategist believes that a GBPUSD move toward $1.4900 is likely before any important bounce. This fits in very well with our broader calls for a US Dollar surge.
--- Written by David Rodriguez, Quantitative Strategist for DailyFX.com
Download all of our Sentiment-based trading strategies free via an ongoing promo on FXCMApps.com
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
Facebook at http://www.Facebook.com/DRodriguezFX
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.
