GBPUSD – Retail FX traders remain extremely long the British Pound versus the US Dollar, and a contrarian view of ‘crowd’ sentiment leaves us firmly in favor of selling into weakness. Indeed, our data shows the majority of traders most recently turned net-long GBP/USD as it traded below $1.3250 through mid-September. Taking the opposite view of what ‘the crowd’ is doing won’t always work this well, but the GBPhas fallen by over 1100 points since the SSI turned net-long.

As long as traders continue to buy we see little reason to change our long-standing bearish trading bias.