GBP/USD: Net-Long Positions Continue Near Highest Yearly Levels
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Net-Short Positions Decrease 25.3% This Week
GBPUSD: Retail trader data shows 74.4% of traders are net-long with the ratio of traders long to short at 2.91 to 1. In fact, traders have remained net-long since Apr 20 when GBPUSD traded near 1.40861; price has moved 7.3% lower since then. The number of traders net-long is 10.1% higher than yesterday and 16.3% higher from last week, while the number of traders net-short is 8.5% lower than yesterday and 25.3% lower from last week.
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GBP/USD Sentiment Shift Indicates 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 Yayati Tanwar, DailyFX Research
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.