Stronger Case Made for the Pound to Rally
GBPUSD: Retail trader data shows 44.0% of traders are net-long with the ratio of traders short to long at 1.27 to 1. The number of traders net-long is 8.7% lower than yesterday and 13.0% lower from last week, while the number of traders net-short is 2.2% higher than yesterday and 11.6% 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. 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
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.