British Pound Forecast Mixed After Sharp Rally
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GBPUSD: Retail trader data shows 30.0% of traders are net-long with the ratio of traders short to long at 2.33 to 1. In fact, traders have remained net-short since Sep 05 when GBPUSD traded near 1.29292; price has moved 4.4% higher since then. The number of traders net-long is 7.4% higher than yesterday and 12.5% lower from last week, while the number of traders net-short is 8.5% lower than yesterday and 3.8% 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. Positioning is less net-short than yesterday but more net-short from last week. The combination of current sentiment and recent changes gives us a further mixed GBPUSD trading bias.
--- Written by Christopher Vecchio, CFA, Senior Currency Strategist
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