Commitments of Traders Report – Week 10 2016 ( ending 11th March)
Althought, there is nothing bullish about the UK economy at the moment, GBPUSD staged a massive rally last week. The pair has now recovered all the losses caused by the Brexit talk few weeks ago.
Looking at Non-commercial positioning, I see they dropped 9K long positions. This is after adding 3.5K in the previous week. Shorts remined unchanged.
Its worth mentioning that the open interest levels are extreme. This could mean that the long term bottom might be in place in GBPUSD.
Summarising last two weeks, we see much more shorts and less longs, which would suggest, the current rally should fade away and downtrend might resume in the coming weeks.
Obviously, this is subject to new information. Last few week’s analysis remains in play
For now, the extreme scenario is still in play. Open interest shows extreme levels compared to past performance. We see that traders are dropping their shorts but are reluctant to buy the market yet. We need more data to confirm the long bias here.
Althought, there is nothing bullish about the UK economy at the moment, GBPUSD staged a massive rally last week. The pair has now recovered all the losses caused by the Brexit talk few weeks ago.
Looking at Non-commercial positioning, I see they dropped 9K long positions. This is after adding 3.5K in the previous week. Shorts remined unchanged.
Its worth mentioning that the open interest levels are extreme. This could mean that the long term bottom might be in place in GBPUSD.
Summarising last two weeks, we see much more shorts and less longs, which would suggest, the current rally should fade away and downtrend might resume in the coming weeks.
Obviously, this is subject to new information. Last few week’s analysis remains in play
For now, the extreme scenario is still in play. Open interest shows extreme levels compared to past performance. We see that traders are dropping their shorts but are reluctant to buy the market yet. We need more data to confirm the long bias here.
Attached Image(s) (click to enlarge)
HumbleTraders
what's shocking is that was a whopping 3 lots trade.
