Breakout in UK100

Breakdown in the British Pound

Today we saw a breakout in the UK100, which I have awaited for a while now.

This red line, is a level that the UK100 has reached in 2018, so it has not done anything in the past 5-6 years.

And now we are taking a closer look at the british pound, which for me seals the deal on this breakout:

(Chart from www.crowdedmarketreport.com approved for use)

We can see in this chart, the positioning of the futures traders, separated in commercials (red) and large (blue) and small (yellow) speculators.

Like in july 2023 we have a crowded long positioning by the speculators against a big short position by the commercials. This does not guarantee anything of course, but in my opinion we have a big potential for a move down in the british pound, at the same time, as we see a Breakout in the UK100.

So this is how I see it, and I am putting my money to work, going long UK100.