I have to admit, I was surprised by the failed rally on GBP:USD over the last several hours. In earlier blog posts this week I revealed my interest in the temporary “cross-over” of retail long & short positions – in other words, the temporary cross-over from green to red highlighted in the screenshot below.
I’ve seen this pattern occur on several major currency pairs, on a number of occasions, and it has preceded a continuation of the prevailing trend.
This market has been experiencing a gradual upwards trend and, having already found support at 1.66000, the green/red cross-over flagged up a possible attack of the 1.68 highs. It wasn’t to be (yet?).

I was surprised by the lack of upward follow through