News Column

British Pound Rally May Fail on Substantial Swing in Sentiment

February 6, 2014

David Rodriguez

GBPUSD - A substantial shift in retail forex sentiment suggests that the British Pound may trade to further lows against the US Dollar and other major counterparts. Trade Implications - GBPUSD: Crowds have remained short the British Pound since the pair set an important low and crossed above $1.5200 in July, but long interest has surged 62% since last week and short positions have fallen 9%. Our purely sentiment-based Momentum2 trading strategy sold GBPUSD from $1.6451 on the important turnaround. And indeed our Senior Technical Strategist warns that the larger GBP rally may fail if it closes below key support. Contact David via

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Source: DailyFx

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