GBPUSD: Prices May Fall While Traders Remain Net-Long
66% of Traders are Net-Long
GBPUSD: Retail trader data shows 66.3% of traders are net-long with the ratio of traders long to short at 1.97 to 1. In fact, traders have remained net-long since Sep 20 when GBPUSD traded near 1.29093; price has moved 2.0% lower since then. The number of traders net-long is 2.3% higher than yesterday and 5.0% lower from last week, while the number of traders net-short is 4.1% lower than yesterday and 26.7% lower from last week.
GBPUSD Sentiment Sparks a Stronger Bearish Bias
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 Fan Xu, DailyFX Research
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.