GBP/USD Sentiment is Unable to Provide a Clear Direction
67% Of Retail Traders are Net-Long
GBPUSD: Retail trader data shows 67.4% of traders are net-long with the ratio of traders long to short at 2.06 to 1. In fact, traders have remained net-long since Sep 20 when GBPUSD traded near 1.29245; price has moved 1.4% lower since then. The number of traders net-long is 5.1% higher than yesterday and 10.0% lower from last week, while the number of traders net-short is 14.7% lower than yesterday and 7.8% 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 more net-long than yesterday but less net-long from last week. The combination of current sentiment and recent changes gives us a further mixed GBPUSD trading bias.
--- Written by Nancy Pakbaz, DailyFX Research
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.