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.
Please visit the pages below to find individual forex forecasts for major currency pairs.
GBPUSD – Forex Trading Sentiment Extreme Forecasts British Pound RalliesEURUSD – Euro Outlook Remains Bearish, but Watch for Short-term EURUSD Bounce
USDJPY – Currency Traders Accurately Signal Japanese Yen GainsUSDCHF – Forex Traders Remain Bearish, Signal RalliesUSDCAD – Canadian Dollar Forecast to Rally Against US Dollar
While the SSI is available once a week on DailyFX.com, you can receive SSI readings twice a day in DailyFX Plus Forex Intraday Trading Signals
The SSI sought a EURUSD rally since 1.26 and was signaling a reversal around 1.60. Find our more in the DailyFX Forex Forum.
