GBP May Reverse as Sentiment Shifts
GBPUSD: Retail trader data shows 42.1% of traders are net-long with the ratio of traders short to long at 1.38 to 1. The number of traders net-long is 14.8% lower than yesterday and 15.9% lower from last week, while the number of traders net-short is 4.4% lower than yesterday and 1.7% 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
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