Sentiment Leaves Unclear Direction for GBP
GBPUSD: Retail trader data shows 47.5% of traders are net-long with the ratio of traders short to long at 1.11 to 1. In fact, traders have remained net-short since Feb 13 when GBPUSD traded near 1.38838; price has moved 0.6% higher since then. The number of traders net-long is 12.4% lower than yesterday and 1.3% lower from last week, while the number of traders net-short is 9.3% lower than yesterday and 9.4% 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
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