British Pound Forecast Hinges on the Crowd’s Next Move
Why and how do we use IG Client Sentiment in trading? See our guide and real-time data.
GBPUSD: Retail trader data shows 50.1% of traders are net-long with the ratio of traders long to short at 1.01 to 1. The number of traders net-long is 5.3% lower than yesterday and 1.6% higher from last week, while the number of traders net-short is 11.4% higher than yesterday and 0.8% 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. Positioning is less net-long than yesterday but more net-long from last week. The combination of current sentiment and recent changes gives us a further mixed GBPUSD trading bias.
See next article in this week’s report:USDJPY - US Dollar Likely to Fall even Further versus Japanese Yen
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.