GBP/USD Sentiment is Unable to Provide a Clear direction
72% Of Retail Traders are Net-Long
GBPUSD: Retail trader data shows 72.0% of traders are net-long with the ratio of traders long to short at 2.57 to 1. In fact, traders have remained net-long since Sep 20 when GBPUSD traded near 1.30258; price has moved 2.0% lower since then. The number of traders net-long is 11.9% lower than yesterday and 3.9% higher from last week, while the number of traders net-short is 0.6% lower than yesterday and 1.3% higher from last week.
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 Fan Xu, DailyFX Research
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.