GBPUSD: Price Tests 1.3500 with Bearish Bias
Short Trades Down by 12% on GBP
GBPUSD: Retail trader data shows 71.3% of traders are net-long with the ratio of traders long to short at 2.49 to 1. In fact, traders have remained net-long since Apr 20 when GBPUSD traded near 1.42933; price has moved 5.5% lower since then. The number of traders net-long is 0.6% higher than yesterday and 1.3% higher from last week, while the number of traders net-short is 12.2% lower than yesterday and 7.8% 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.