GBPUSD Price Set to Fall
Traders Net-Long Up by 26%
GBPUSD: Retail trader data shows 66.5% of traders are net-long with the ratio of traders long to short at 1.99 to 1. In fact, traders have remained net-long since Apr 20 when GBPUSD traded near 1.40793; price has moved 3.5% lower since then. The number of traders net-long is 1.3% lower than yesterday and 26.3% higher from last week, while the number of traders net-short is 7.5% lower than yesterday and 15.0% lower from last week.
GBP Maintains Strong Bearish Bias
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
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.