Traders Remain Net-Long
GBPUSD: Retail trader data shows 74.5% of traders are net-long with the ratio of traders long to short at 2.92 to 1. In fact, traders have remained net-long since Sep 20 when GBPUSD traded near 1.28563; price has moved 2.1% lower since then. The number of traders net-long is 19.4% higher than yesterday and 12.2% higher from last week, while the number of traders net-short is 27.7% lower than yesterday and 26.2% lower from last week.
GBPUSD Sentiment Suggests 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