GBPUSD: Support Holds at 1.331 Despite Bearish Bias
Cable Traders Dump Short Positions
GBPUSD: Retail trader data shows 72.8% of traders are net-long with the ratio of traders long to short at 2.67 to 1. In fact, traders have remained net-long since Apr 20 when GBPUSD traded near 1.4337; price has moved 6.8% lower since then. The number of traders net-long is 3.2% higher than yesterday and 2.2% higher from last week, while the number of traders net-short is 10.1% lower than yesterday and 13.7% lower from last week.
GBP Maintains Bearish Trading 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
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