Receive the Weekly Speculative Sentiment Index report via PDF via David’s e-mail distribution list.
Trade Implications – GBPUSD: Last week we noted that a shift in crowd sentiment helped confirm an important Sterling turn lower, and indeed our sample shows that the trading herd is now net-long the GBPUSD for the first time since it traded near $1.55 in August, 2013.
The difficulty is now finding an attractive entry point for a short position. The GBPUSD has now fallen in 14 of the past 16 trading days, and momentum is clearly stretched. We remain bearish as long as price remains below $1.70, and there’s little significant support before June lows near $1.67.
See next currency section:USDJPY – Key Factors Favor a Much Larger USDJPY Breakout
— Written by David Rodriguez, Quantitative Strategist for DailyFX.com
Automate our SSI-based trading strategies via Mirror Trader free of charge
To receive the Speculative Sentiment Index and other reports from this author via e-mail, sign up for his distribution list via this link.
Contact David via
Twitter at http://www.twitter.com/DRodriguezFX