GBP/USD Ratio: -1.66 Signal: Bullish
GBPUSD – Similar to the euro-based major, GBPUSD price action is being guided by a highly visible technical range - and retail traders are proving themselves adept at taking advantage of the clear levels. With the most recent touch of a major descending trend now near 1.9750, the pair’s Sentiment gauge has seen a notable skew towards the short side of the market. The ratio stands at -1.66 with nearly 62% of the retail market short. This compares to the -1.71 reading from last week when spot happened to be testing the same level. The indicator’s details show that despite the modest change in the ratio, there has actually been significant volatility in positioning. From yesterday, longs have dropped 10%, which has led to a 20.5% week-over-week contraction. For those looking for sustained range conditions, shorts have grown only 3.9% from yesterday but are a significant 27.9% higher than last week. Open interest slipped 6.2% from last week, but is still 4.9% above the monthly average.