British Pound Direction Uncertain, but Trend Favors Gains
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GBPUSD: Retail trader data shows 40.5% of traders are net-long with the ratio of traders short to long at 1.47 to 1. In fact, traders have remained net-short since Jun 23 when GBPUSD traded near 1.27733; price has moved 2.0% higher since then. The number of traders net-long is 6.6% higher than yesterday and 3.5% higher from last week, while the number of traders net-short is 20.5% higher than yesterday and 0.5% 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 more net-short than yesterday but less net-short from last week. The combination of current sentiment and recent changes gives us a further mixed GBPUSD trading bias.
See next article in this week’s report: USDJPY - US Dollar Remains a Sell versus Japanese Yen
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