British Pound Gives Mixed Signal Based on Sentiment
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GBPUSD: Retail trader data shows 39.1% of traders are net-long with the ratio of traders short to long at 1.55 to 1. In fact, traders have remained net-short since Apr 12 when GBPUSD traded near 1.23716; price has moved 4.0% higher since then. The number of traders net-long is 6.1% lower than yesterday and 4.1% higher from last week, while the number of traders net-short is 2.4% higher than yesterday and 5.2% 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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