British Pound Sentiment Sees Shift - Next Move Key
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GBPUSD: Retail trader data shows 48.1% of traders are net-long with the ratio of traders short to long at 1.08 to 1. In fact, traders have remained net-short since Apr 12 when GBPUSD traded near 1.24863; price has moved 2.4% higher since then. The percentage of traders net-long is now its highest since Apr 13 when GBPUSD traded near 1.25061. The number of traders net-long is 12.0% higher than yesterday and 9.8% higher from last week, while the number of traders net-short is 10.4% lower than yesterday and 2.5% higher 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.