GBP: The 52 week COT index remains at 0. This reading indicates a bearish sentiment extreme and potential for a low to form. Also, at -108,264, composite COT is the lowest ever! The previous low was -92,119 in July 1999 (see vertical line on the chart).
Cable was in a longer term downtrend at that point but rallied nearly 1,400 pips in less than 3 months following the extreme July 1999 reading. The difference between then and now is that the percentage of commercials that we were long was at 90% then. Now, just 80% commercials are long.
Implications: bottoming?