GBPUSD: Retail trader data shows 67.4% of traders are net-long with the ratio of traders long to short at 2.07 to 1. The number of traders net-long is 50.2% higher than yesterday and 36.4% higher from last week, while the number of traders net-short is 26.4% lower than yesterday and 13.2% 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