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GBPUSD– Retail FX traders are once again net-long the British Pound versus the US Dollar, and a contrarian view of crowd sentiment leaves us in favor of selling into weakness.
Our data shows traders remained net-long GBP/USD as it fell from $1.53 to lows near $1.38 but briefly turned net-short as of last week. A switch back to net-long suggests the longer-term downtrend is once again in effect, and indeed it would take a substantive shift in the opposite direction to change our broadly bearish trading bias.
See next currency section: USDJPY - US Dollar Remains a Sell versus the Japanese Yen
--- Written by David Rodriguez, Quantitative Strategist for DailyFX.com
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