Advertisement
U.S. markets closed
  • S&P 500

    5,254.35
    +5.86 (+0.11%)
     
  • Dow 30

    39,807.37
    +47.29 (+0.12%)
     
  • Nasdaq

    16,379.46
    -20.06 (-0.12%)
     
  • Russell 2000

    2,124.55
    +10.20 (+0.48%)
     
  • Crude Oil

    83.11
    -0.06 (-0.07%)
     
  • Gold

    2,254.80
    +16.40 (+0.73%)
     
  • Silver

    25.10
    +0.18 (+0.74%)
     
  • EUR/USD

    1.0794
    +0.0001 (+0.01%)
     
  • 10-Yr Bond

    4.2060
    +0.0100 (+0.24%)
     
  • GBP/USD

    1.2638
    +0.0016 (+0.13%)
     
  • USD/JPY

    151.2360
    -0.1360 (-0.09%)
     
  • Bitcoin USD

    69,836.26
    -1,430.38 (-2.01%)
     
  • CMC Crypto 200

    885.54
    0.00 (0.00%)
     
  • FTSE 100

    7,952.62
    +20.64 (+0.26%)
     
  • Nikkei 225

    40,369.44
    +201.37 (+0.50%)
     

British Pound Stops and Reverses - Is it a True Breakdown?

ssi_gbp-usd_body_Picture_15.png, British Pound Stops and Reverses - Is it a True Breakdown?
ssi_gbp-usd_body_Picture_15.png, British Pound Stops and Reverses - Is it a True Breakdown?

GBPUSD – Retail forex trading crowds have grown net-long the British Pound against the US Dollar (ticker: USDOLLAR), and our sentiment-based trading strategies have gone in the opposite direction.

Trade Implications – GBPUSD: Choppy GBP price action has forced our purely SSI-driven Momentum2 to go both long and short within the past week with mixed results. Our Speculative Sentiment Index most often works as a contrarian indicator to price action in trending market conditions. Most retail traders tend to buy weakness and sell strength, and such a mean-reversion strategy will tend to do fairly well in range-bound markets.

Our Senior Technical Strategist believes that the GBPUSD may continue recent declines, but we will need to see considerable follow-through on the recent US Dollar bounce to maintain confidence in our GBPUSD-bearish bias.

--- 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.

ssi_gbp-usd_body_1a_1.png, British Pound Stops and Reverses - Is it a True Breakdown?
ssi_gbp-usd_body_1a_1.png, British Pound Stops and Reverses - Is it a True Breakdown?

View how to automate the high-volatility Breakout2 Trading System via our previous article and webinar recording.

Auto trade the trend reversal-trading Momentum2system via our previous article and webinar recording.

Trade with strong trends via our Momentum1 Trading System and view an archived webinar

Use our counter-trend Range2 Trading system and view an archived webinar guide on automation

New to FX markets? Learn more in our video trading guide.

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.

Advertisement