British Pound Short Positions May Push Price Higher
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GBPUSD: Retail trader data shows 37.9% of traders are net-long with the ratio of traders short to long at 1.64 to 1. In fact, traders have remained net-short since Apr 12 when GBPUSD traded near 1.23717; price has moved 5.2% higher since then. The percentage of traders net-long is now its lowest since May 10 when GBPUSD traded near 1.29286. The number of traders net-long is 15.2% lower than yesterday and 15.9% lower from last week, while the number of traders net-short is 4.9% higher than yesterday and 0.3% 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. Traders are further net-short than yesterday and last week, and the combination of current sentiment and recent changes gives us a stronger GBPUSD-bullish contrarian trading bias.
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