British Pound May Fall on Sentiment
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GBPUSD: Retail trader data shows 42.0% of traders are net-long with the ratio of traders short to long at 1.38 to 1. In fact, traders have remained net-short since Apr 12 when GBPUSD traded near 1.23717; price has moved 4.4% higher since then. The number of traders net-long is 0.8% higher than yesterday and 14.5% higher from last week, while the number of traders net-short is 5.7% lower than yesterday and 8.4% 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.
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