GBPUSD: Direction Remains Unclear
NET-SHORT POSITIONS INCREASE FROM LAST WEEK
GBPUSD: Retail trader data shows 50.2% of traders are net-long with the ratio of traders long to short at 1.01 to 1. The number of traders net-long is 12.6% lower than yesterday and 7.1% lower from last week, while the number of traders net-short is 23.7% higher than yesterday and 10.2% higher from last week.
SENTIMENT SHIFT WARNS GBPUSD MAY REVERSE HIGHER
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