GBP Price May Go Lower As Sentiment Sours
GBPUSD: Retail trader data shows 56.3% of traders are net-long with the ratio of traders long to short at 1.29 to 1. The number of traders net-long is 5.7% lower than yesterday and 40.8% higher from last week, while the number of traders net-short is 8.9% lower than yesterday and 30.5% 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. Traders are further net-long than yesterday and last week, and the combination of current sentiment and recent changes gives us a stronger GBPUSD-bearish contrarian trading bias.
--- Written by Dylan Jusino, DailyFX Research