Pound Soon to Fall Based On Long Positions
GBPUSD: Retail trader data shows 58.3% of traders are net-long with the ratio of traders long to short at 1.4 to 1. The number of traders net-long is 9.8% higher than yesterday and 7.3% higher from last week, while the number of traders net-short is 19.3% lower than yesterday and 20.0% 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 Dylan Jusino, DailyFX Research