GBP/USD Ratio: -1.47 Trading Forecast: Bullish
GBPUSD –The forex trading crowd has, perhaps unexpectedly, accurately forecasted continued British Pound/US Dollar declines through the past two months of trading. We have most often seen crowds attempt to buy into strong downtrends, but that has not been the case as of late. This dynamic has admittedly has decreased the effectiveness of our SSI as a forecasting tool for the GBP/USD. That being said, we do see that selling interest has actually picked up on the British Pound against the US Dollar, and many traders may be attempting to latch on to the final stages of recent GBP/USD tumbles. Short positions are 19.1% higher than yesterday and 4.7% stronger since last week. The strong jump in short interest suggests that we may see the GBP/USD turn through near-term trade, but again, our confidence in said forecast is low due to sustained selling interest through recent GBP/USD tumbles. Discuss the British Pound with other traders in our forex forum.