GBP/USD: Weekly Short Positions Decrease 22% Sparking Bearish Bias
Weekly Net-Long Positions Increase 17%
GBPUSD: Retail trader data shows 64.8% of traders are net-long with the ratio of traders long to short at 1.84 to 1. In fact, traders have remained net-long since Sep 20 when GBPUSD traded near 1.3138; price has moved 1.1% lower since then. The number of traders net-long is 0.3% lower than yesterday and 17.6% higher from last week, while the number of traders net-short is 4.3% lower than yesterday and 22.3% lower from last week.
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GBPUSD Sentiment Suggest That Price Could Slump Lower
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
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.