British Pound May Resume Downtrend on Recent Sentiment Shift
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GBPUSD: Retail trader data shows 48.8% of traders are net-long with the ratio of traders short to long at 1.05 to 1. The number of traders net-long is 12.8% higher than yesterday and 0.9% higher from last week, while the number of traders net-short is 11.6% lower than yesterday and 5.8% lower from last week.
We typically take a contrarian view to crowd sentiment, and the fact traders are net-short suggests GBPUSD prices may continue to rise. Yet traders are less net-short than yesterday and compared with last week. Recent changes in sentiment warn that the current GBPUSD price trend may soon reverse lower despite the fact traders remain net-short.
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.