British Pound May Hold Gains versus Dollar
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GBPUSD: Retail trader data shows 41.2% of traders are net-long with the ratio of traders short to long at 1.43 to 1. In fact, traders have remained net-short since Apr 12 when GBPUSD traded near 1.24364; price has moved 4.0% higher since then. The number of traders net-long is 10.0% higher than yesterday and 11.6% lower from last week, while the number of traders net-short is 9.1% higher than yesterday and 10.9% higher 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 less net-short than yesterday but more net-short from last week. The combination of current sentiment and recent changes gives us a further mixed GBPUSD trading bias.
See next article in this week’s report: USDJPY - US Dollar Likely to Continue Lower versus Japanese Yen
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