GBPUSD Left Without a Clear Signal from Sentiment
GBPUSD: Retail trader data shows 47.2% of traders are net-long with the ratio of traders short to long at 1.12 to 1. In fact, traders have remained net-short since Mar 21 when GBPUSD traded near 1.40037; price has moved 0.1% lower since then. The number of traders net-long is 3.3% lower than yesterday and 10.0% higher from last week, while the number of traders net-short is 2.4% lower than yesterday and 9.2% 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