British Pound Trend May have Changed versus Dollar
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GBPUSD: Retail trader data shows 38.8% of traders are net-long with the ratio of traders short to long at 1.58 to 1. In fact, traders have remained net-short since Jun 23 when GBPUSD traded near 1.26787; price has moved 2.0% higher since then. The number of traders net-long is 2.9% higher than yesterday and 10.2% higher from last week, while the number of traders net-short is 4.4% lower than yesterday and 1.8% 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. Yet traders are less net-short than yesterday and compared with last week. Recent changes in sentiment warn that the current GBPUSD price trend may soon reverse lower despite the fact traders remain net-short.
See next article in this week’s report:USDJPY - US Dollar Remains a Buy versus Japanese Yen
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