Net-Long Positions Increase to 73% Despite Recent Declines
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 1.40634; price has moved 8.4% lower since then. The number of traders net-long is 3.8% higher than yesterday and 13.8% higher from last week, while the number of traders net-short is 7.0% lower than yesterday and 7.2% lower from last week.
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GBP/USD Sentiment Suggest Prices May Continue to Fall
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