How to Make GBP/USD Bring You Money

The British Pound has recently attracted attention by unexpected decisions that can be viewed as contradictory and even radical. In such a variety of opinions and events, it is very difficult to determine how to deal with a currency, whose volatility is clearly growing but significantly depends on expectations.

In our turn, we understand that since the instrument causes increased interest among participants, the opinion of major traders should have grounds for themselves that can become a beacon in transactions.

If we consider how the value of the currency changed over the past year, then it is clear that there were ups and downs, which were accompanied by significant spikes, which also manifested itself in the position of major traders.

Figure 1. The price chart of GBP/USD from 06/06/2017 to 08.27.2018.

In Figure 1, we see that the position of big traders has exactly the same trend as the value of the asset GBP/USD.

We also see that the last values ​​are in the lower limits of values, which indicates an early reversal of the value of the asset, but in the short term, such a reversal is not yet planned, according to major traders.

At the same time, the view is still in the direction of the fact that the downward trend continues, which is expressed in the more intense short side of the position on the asset.

Thus, the projected forecast is a more intense short position on the instrument.

Figure 2. Price chart and the index of major traders for GBP/USD from 07.31.2018 to 08.27.2018.