Key Shift In Sentiment Gives Pound Mixed Trading Bias
GBPUSD: Retail trader data shows 58.6% of traders are net-long with the ratio of traders long to short at 1.42 to 1. In fact, traders have remained net-long since Nov 01 when GBPUSD traded near 1.30522; price has moved 0.7% higher since then. The number of traders net-long is 4.5% lower than yesterday and 21.2% lower from last week, while the number of traders net-short is 10.5% lower than yesterday and 1.9% higher 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. Positioning is more net-long than yesterday but less net-long from last week. The combination of current sentiment and recent changes gives us a further mixed GBPUSD trading bias.
--- Written by Dylan Jusino, DailyFX Research