According to the FXCM execution desk data on the positioning of more than 25.000 retail traders, 51% of traders are long GBPUSD (long to short ratio is 1.04). Last week, the ratio was at -1.55 as 61% of open positions were short. Moreover, since last week, the majority of traders have been aggressively buying GBPUSD (long positions are up by 56.2%). In the past, when retail was long and buying more, the GBPUSD has sold off in the following days. The SSI gives us a STRONG SIGNAL TO SELL GBPUSD.
We have been calling for a rally in the EURUSD since the pair was trading at 1.26. Find our more in the DailyFX Forum.
Historical Charts of Speculative Positioning
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