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British Pound Forecast to Rally even Further

British Pound Forecast to Rally even Further

David Rodriguez, Head of Product
British Pound Forecast to Rally even Further

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

GBPUSD: Retail trader data shows 40.2% of traders are net-long with the ratio of traders short to long at 1.49 to 1. In fact, traders have remained net-short since Jun 23 when GBPUSD traded near 1.27744; price has moved 3.1% higher since then. The number of traders net-long is 9.5% higher than yesterday and 16.8% lower from last week, while the number of traders net-short is 4.2% higher than yesterday and 9.4% 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. Until we see a more sustained shift in sentiment, however, we expect the GBPUSD to continue onto fresh near-term highs.

See next article in this week’s report:USDJPY - Is the Dollar a Buy or Sell versus Japanese Yen?

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

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