GBP/USD Ratio: -1.75 Signal: Bullish
GBPUSD – Their dependence on steady congestive price action failed speculative GBPUSD traders two weeks ago when the pair drove through 1.98. However, the retail group was persistent in its calls for the sterling-based currency pair to keep in line with the sideways price action across the majors; and shorts surged when spot approached the psychologically significant 2.00 figure. Last week, just before Thursday’s wave of event risk swept over the markets, the pound’s SSI ratio stood at -2.05 – the highest weekly reading since November. Today, the gauge is holding at -1.75 and with nearly 65% of the retail market short. And it seems with the speculative community trading against 2.00, their confidence in enduring range conditions seems unflappable. Indeed, the report’s breakdown reveals long positions have dipped 0.9% from yesterday and 8.8% over the week. At the same time, shorts have grown 1.3% from Wednesday and 17.7% since last Thursday. Overall, open interest is 1.1% higher on the week and 9.1% above the average.