GBP/USD Sentiment is Unable to Provide a Clear direction
66% Of Retail Traders are Net-Long
GBPUSD: Retail trader data shows 66.8% of traders are net-long with the ratio of traders long to short at 2.01 to 1. In fact, traders have remained net-long since Sep 20 when GBPUSD traded near 1.30463; price has moved 0.8% lower since then. The number of traders net-long is 1.0% higher than yesterday and 1.0% lower from last week, while the number of traders net-short is 2.6% higher than yesterday and 8.3% lower from last week.
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GBPUSD Sentiment Prompts a Mixed Bias
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 less net-long than yesterday but more 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.