GBP/USD: Net-Longs Reach 70% As Price Continues To Decline
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Net-Short Positions Decrease 18.4% Since Last Week
GBPUSD: Retail trader data shows 70.4% of traders are net-long with the ratio of traders long to short at 2.37 to 1. In fact, traders have remained net-long since Apr 20 when GBPUSD traded near 1.40858; price has moved 7.4% lower since then. The number of traders net-long is 11.7% higher than yesterday and 14.4% higher from last week, while the number of traders net-short is 6.0% lower than yesterday and 18.4% lower from last week.
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Shift in Net-Longs Suggest 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.