British Pound Sentiment Turns Negative
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GBPUSD: Retail trader data shows 50.2% of traders are net-long with the ratio of traders long to short at 1.01 to 1. The percentage of traders net-long is now its highest since Sep 01 when GBPUSD traded near 1.29512. The number of traders net-long is 3.5% higher than yesterday and 34.7% higher from last week, while the number of traders net-short is 3.6% lower than yesterday and 21.8% lower from last week.
We typically take a contrarian view to crowd sentiment, and the fact traders are net-long suggests GBPUSD prices may continue to fall. Traders are further net-long than yesterday and last week, and the combination of current sentiment and recent changes gives us a stronger GBPUSD-bearish contrarian trading bias.
--- Written by Christopher Vecchio, CFA, Senior Currency Strategist
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