British Pound Forecast to Continue Lower on Key Shift
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GBPUSD: Retail trader data shows 51.6% of traders are net-long with the ratio of traders long to short at 1.07 to 1. The number of traders net-long is 8.7% higher than yesterday and 40.3% higher from last week, while the number of traders net-short is 8.0% lower than yesterday and 8.5% lower from last week.
We typically take a contrarian view to crowd sentiment, and the fact traders are net-long suggests GBPUSD prices may continue to fall. Traders are further net-long than yesterday and last week, and the combination of current sentiment and recent changes gives us a stronger GBPUSD-bearish contrarian trading bias.
See next article in this week’s report: USDJPY - Japanese Yen Rally May be Overdone, but Trend Remains Clear
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