[B]GBP/USD Ratio: -1.11
Trading Signal: Bullish[/B]
[B]Forex Positioning in the British Pound/US Dollar[/B]
[B]Currency[/B]
[B]Last Week[/B]
[B]Present*[/B]
[B]% Long[/B]
[B]% Change in Positions Outstanding[/B]
[B]Signal[/B]
[B]GBPUSD[/B]
1.31
-1.11
0.47
-0.1217
Bullish
[B]GBPUSD – [/B]Our forex sentiment indicator forecasts that the British Pound is likely to rally against the US dollar through short term forex trade, as traders have actually flipped from net-long the GBPUSD to net-short in the past day of currency trading. This is typically one of the stronger signals generated from the SSI, and the fact that it has occurred after such substantial losses underlines the point that we have reached a sentiment extreme in the British Pound. This likewise coincides with a bullish forex futures sentiment extreme as reported by the CFTC’s Commitment of Traders report, and the confluence of these factors is suggestive of a short-term GBPUSD bottom. The SSI is a contrarian indicator and signals GBPUSD gains.