NUMBER OF TRADERS NET-LONG DECREASE FROM LAST WEEK
GBPUSD: Retail trader data shows 53.4% of traders are net-long with the ratio of traders long to short at 1.15 to 1. In fact, traders have remained net-long since Sep 20 when GBPUSD traded near 1.29246; price has moved 0.2% lower since then. The number of traders net-long is 3.8% lower than yesterday and 4.2% lower from last week, while the number of traders net-short is unchanged than yesterday and 2.5% higher from last week.
GBPUSD DIRECTION REMAINS UNCLEAR
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 Nancy Pakbaz, CFA, DailyFX Research