Pound May Trade Higher Based on Bullish Trading Bias
GBPUSD: Retail trader data shows 49.6% of traders are net-long with the ratio of traders short to long at 1.02 to 1. The percentage of traders net-long is now its lowest since Nov 01 when GBPUSD traded near 1.32549. The number of traders net-long is 0.9% lower than yesterday and 15.6% lower from last week, while the number of traders net-short is 10.0% higher than yesterday and 18.2% higher 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. Traders are further net-short than yesterday and last week, and the combination of current sentiment and recent changes gives us a stronger GBPUSD-bullish contrarian trading bias.
--- Written by Dylan Jusino, DailyFX Research
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