Short Positions Grow 23% Overnight As May’s Confidence Vote Approaches
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64% Of Retail Traders are Net-Long
GBPUSD: Retail trader data shows 64.7% of traders are net-long with the ratio of traders long to short at 1.83 to 1. In fact, traders have remained net-long since Sep 20 when GBPUSD traded near 1.2914; price has moved 2.1% lower since then. The number of traders net-long is 7.3% lower than yesterday and 4.9% lower from last week, while the number of traders net-short is 23.4% higher than yesterday and 29.2% higher from last week.
GBPUSD Sentiment Suggest That Prices May Continue to Rise
We typically take a contrarian view to crowd sentiment, and the fact traders are net-long suggests GBPUSD prices may continue to fall. Yet traders are less net-long than yesterday and compared with last week. Recent changes in sentiment warn that the current GBPUSD price trend may soon reverse higher despite the fact traders remain net-long.
--- Written by Jake Schoenleb, DailyFX Research
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.