British Pound Gains May Slow
GBPUSD - Forex trading crowds have remained net-short the British Pound against the US Dollar since the pair traded near the 1.5600 mark, providing strong contrarian signal to go long. Yet a noteworthy pullback in short interest and bounce in long positions suggests momentum may slow. The ratio of long to short positions in the GBPUSD stands at -1.98 as nearly 66% of traders are short. This compares to yesterday when the ratio was at -2.97 as 75% of open positions were short. In detail, long positions are 32.4% higher than yesterday and 7.9% weaker since last week. Short positions are 11.7% lower than yesterday and 29.2% stronger since last week. Open interest is 0.6% weaker than yesterday and 3.4% above its monthly average. The SSI is a contrarian indicator and signals more GBPUSD gains, but the moderation in sentiment suggests gains may slow.
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Read this newsletter in your browser . Forex Trading Newsletter | June 26th, 2011 DailyForex.com Q3 2011- New Outlooks, New Tools Q3 2011 begins at the end of this week, but for most Forex traders, looking backwards is the only way to prepare for the changes ahead. Amid speculation that the Bank of England will keep interest rates down, the British Pound posted its fourth week of consecutive declines against
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