Retail Traders Continue To Fight The Trend
GBPUSD: Retail trader data shows 73.5% of traders are net-long with the ratio of traders long to short at 2.77 to 1. In fact, traders have remained net-long since Apr 20 when GBPUSD traded near 1.41763; price has moved 7.1% lower since then. The number of traders net-long is 6.8% lower than yesterday and 3.3% higher from last week, while the number of traders net-short is 8.9% 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 Jake Schoenleb, DailyFX Research