GBPUSD Price Might Dip Lower Based on Sentiment
Traders Remain Net-Long Since Apr 20
GBPUSD: Retail trader data shows 72.4% of traders are net-long with the ratio of traders long to short at 2.62 to 1. In fact, traders have remained net-long since Apr 20 when GBPUSD traded near 1.41803; price has moved 7.0% lower since then. The number of traders net-long is 7.0% higher than yesterday and 4.5% higher from last week, while the number of traders net-short is 0.1% lower than yesterday and 14.2% lower from last week.
GBPUSD Trades with 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 Abdullah AlAmoudi, DailyFX Research
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