British Pound Still Bullish on Strong Net-Short Positions
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GBPUSD: Retail trader data shows 43.6% of traders are net-long with the ratio of traders short to long at 1.29 to 1. In fact, traders have remained net-short since Apr 12 when GBPUSD traded near 1.24863; price has moved 2.7% higher since then. The number of traders net-long is 4.5% lower than yesterday and 6.4% higher from last week, while the number of traders net-short is 1.6% lower than yesterday and 14.6% 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. Positioning is more net-short than yesterday but less net-short from last week. The combination of current sentiment and recent changes gives us a further mixed GBPUSD trading bias.
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