Smart Money Bets on British Pound Weakness


View photo

ssi_gbp-usd_body_Picture_13.png, Smart Money Bets on British Pound Weakness

GBPUSD – Retail FX crowds continue buying aggressively into British Pound tumbles, and our sentiment-based trading strategies remain positioned for further declines.

Trade Implications – GBPUSD: Our proprietary SSI data shows that crowds are now their most net-long GBPUSD since the pair set a multi-year low back in March. That’s obviously a warning sign that the move might be overdone (and GBP could bounce), but context is everything.

It’s entirely possible that the British Pound set a key high on May 1 at $1.5605, and the fact that USD volatility prices continue to surge suggests that professional/institutional traders are positioning for further GBPUSD weakness. We remain in favor of selling any noteworthy GBP bounces as it holds key highs.

--- Written by David Rodriguez, Quantitative Strategist for

ssi_gbp-usd_body_1a_1.png, Smart Money Bets on British Pound Weakness

Download all of our Sentiment-based trading strategies free via an ongoing promo on

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

Facebook at

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.

View Comments (0)