GBP/USD Ratio: -1.49
Signal: Bullish
| Currency | Last Week | Present* | % Long | % Change in Positions Outstanding | Signal |
| GBPUSD | -1.57 | -1.49 | 40% | 3.47% | Bullish |
GBPUSD – Weekly flips in GBPUSD positioning now appear to be a thing of past as the pair’s sentiment reading has reported its second consecutive net negative reading with this week’s -1.49 figure. With nearly 60% of retail trades short the pound, it seems speculative traders are putting considerable faith in ongoing range conditions. Looking at GBPUSD price action, has turned from a strong rally last week to congestion between 1.9850 and 1.97 which is further set within a larger descending wedge formation. However, despite the proximity of resistance, positioning on both sides of the market has changed little. Long positions actually grew 5.2% since Wednesday and are 1.1% stronger than a week ago. At the same time, shorts dropped 7.1% from yesterday, though they are 5.1% greater than last week’s levels. Overall, total positioning has changed little as traders await direction. Open interest is 1.8% higher than last week but 5.5% below the monthly average. As a contrarian indicator, the SSI points to further GBPUSD upside, but the persistence of range conditions could dull the efficacy of the indicator.
