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
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