Net-Short GBP/USD Positioning Dwindling
Why and how do we use IG Client Sentiment in trading? See our guide and real-time data.
GBPUSD: Retail trader data shows 46.1% of traders are net-long with the ratio of traders short to long at 1.17 to 1. In fact, traders have remained net-short since Sep 05 when GBPUSD traded near 1.29512; price has moved 2.4% higher since then. The number of traders net-long is 15.9% higher than yesterday and 35.6% higher from last week, while the number of traders net-short is 6.8% lower than yesterday and 26.6% 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. Recent changes in sentiment warn that the current GBPUSD price trend may soon reverse lower despite the fact traders remain net-short.
--- Written by Christopher Vecchio, CFA, Senior Currency Strategist
To contact Christopher Vecchio, e-mail firstname.lastname@example.org
Follow him on Twitter at @CVecchioFX
To be added to Christopher's e-mail distribution list, please fill out this form
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.