Sentiment Suggests GBPUSD Bulls May Take Over
GBPUSD: Retail trader data shows 33.1% of traders are net-long with the ratio of traders short to long at 2.02 to 1. In fact, traders have remained net-short since Mar 21 when GBPUSD traded near 1.40244; price has moved 1.4% higher since then. The percentage of traders net-long is now its lowest since Jan 14 when GBPUSD traded near 1.37308. The number of traders net-long is 11.2% lower than yesterday and 28.5% lower from last week, while the number of traders net-short is 5.3% higher than yesterday and 34.1% 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