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British Pound Short Positions May Push Price Higher

British Pound Short Positions May Push Price Higher

DailyFX Research,
British Pound Short Positions May Push Price Higher

Why and how do we use IG Client Sentiment in trading? See our guide.

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.

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

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