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.