Traders Give Pound Room to Trade Higher
GBPUSD: Retail trader data shows 50.6% of traders are net-long with the ratio of traders long to short at 1.03 to 1. The number osf traders net-long is 8.3% lower than yesterday and 18.6% lower from last week, while the number of traders net-short is 5.3% lower than yesterday and 4.4% 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. Yet traders are less net-long than yesterday and compared with last week. Recent changes in sentiment warn that the current GBPUSD price trend may soon reverse higher despite the fact traders remain net-long.
--- Written by Dylan Jusino, DailyFX Research
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.