GBP/USD: Positioning Pulls Away from Extremes as Price Drifts Lower
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Net-Short Positions Increase 13.6% This Week
GBPUSD: Retail trader data shows 65.8% of traders are net-long with the ratio of traders long to short at 1.92 to 1. In fact, traders have remained net-long since Apr 20 when GBPUSD traded near 1.40029; price has moved 6.3% lower since then. The number of traders net-long is 6.6% lower than yesterday and 20.0% lower from last week, while the number of traders net-short is 8.5% lower than yesterday and 13.6% higher from last week.
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GBP/USD Sentiment Unable to Provide Clear Direction
We typically take a contrarian view to crowd sentiment, and the fact traders are net-long suggests GBPUSD prices may continue to fall. Positioning is more net-long than yesterday but less net-long from last week. The combination of current sentiment and recent changes gives us a further mixed GBPUSD trading bias.
--- Written by Jake Schoenleb, DailyFX Research
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.