British Pound Trades Mixed Despite Moving Higher
GBPUSD: Retail trader data shows 44.6% of traders are net-long with the ratio of traders short to long at 1.24 to 1. In fact, traders have remained net-short since Nov 21 when GBPUSD traded near 1.32465; price has moved 1.7% higher since then. The number of traders net-long is 13.7% lower than yesterday and 6.9% lower from last week, while the number of traders net-short is 2.5% lower than yesterday and 18.8% lower 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. Positioning is more net-short than yesterday but less net-short 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