GBPUSD Bears May Be in For a Favorable Outcome
GBPUSD: Retail trader data shows 42.6% of traders are net-long with the ratio of traders short to long at 1.35 to 1. In fact, traders have remained net-short since Mar 21 when GBPUSD traded near 1.40037; price has moved 0.1% higher since then. The number of traders net-long is 6.7% higher than yesterday and 0.7% lower from last week, while the number of traders net-short is 14.1% lower than yesterday and 14.3% 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. Yet traders are less net-short than yesterday and compared with last week. Recent changes in sentiment warn that the current GBPUSD price trend may soon reverse lower despite the fact traders remain net-short.
--- Written by Dylan Jusino, DailyFX Research
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