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British Pound Likely to Stick to Narrow Trading Range

British Pound Likely to Stick to Narrow Trading Range

David Rodriguez, Head of Product
British Pound Likely to Stick to Narrow Trading Range

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

GBPUSD: Retail trader data shows 47.0% of traders are net-long with the ratio of traders short to long at 1.13 to 1. The number of traders net-long is 3.6% higher than yesterday and 5.7% higher from last week, while the number of traders net-short is 0.2% higher than yesterday and 9.3% 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. Yet traders are less net-short than yesterday and compared with last week. The larger trend paints a mixed picture for near-term price action in the GBP/USD. And indeed, current sentiment suggests the British Pound may continue to trade sideways through the foreseeable future.

See next article in this week’s report: USDJPY - US Dollar may Rally Further versus Japanese Yen

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

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