Key Shift in Trader Sentiment May Push Pound Lower
GBPUSD: Retail trader data shows 51.5% of traders are net-long with the ratio of traders long to short at 1.06 to 1. The number of traders net-long is 0.5% lower than yesterday and 5.4% higher from last week, while the number of traders net-short is 9.0% lower than yesterday and 17.8% 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
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.