Pound May Continue to Rise

GBPUSD: Retail trader data shows 46.3% of traders are net-long with the ratio of traders short to long at 1.16 to 1. The percentage of traders net-long is now its lowest since Dec 13 when GBPUSD traded near 1.34085. The number of traders net-long is 3.8% lower than yesterday and 6.0% lower from last week, while the number of traders net-short is 5.3% higher than yesterday and 10.2% 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