British Pound Sentiment Sees Big Shift - Rallies Likely
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GBPUSD: Retail trader data shows 60.6% of traders are net-long with the ratio of traders long to short at 1.54 to 1. In fact, traders have remained net-long since Feb 24 when GBPUSD traded near 1.25537; price has moved 1.6% lower since then. The number of traders net-long is 11.8% lower than yesterday and 32.9% lower from last week, while the number of traders net-short is 8.1% higher than yesterday and 33.5% higher from last week.
We typically take a contrarian view to crowd sentiment, and the fact traders are net-long suggests GBPUSD prices may continue to fall. Yet traders are less net-long than yesterday and compared with last week. Recent changes in sentiment warn that the current GBPUSD price trend may soon reverse higher despite the fact traders remain net-long.
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