British Pound Technical Outlook

Published September 9th, 2008 - 08:11 GMT
Al Bawaba
Al Bawaba

Various sentiment measures are extreme and suggest that a turn is imminent.  “COT positioning is the most extreme in its history by some measures (net speculative shorts and net commercial longs).”



13 day RSI finished at its lowest level since the 1970s on Friday.  On multiple time frames, divergence with RSI warns of a turn.  On the daily, a sharp pullback is needed to correct the extreme oversold reading.