GBPUSD: Sentiment Suggests Bearish Trading Bias
58% OF TRADERS ARE NET-LONG
GBPUSD: Retail trader data shows 58.0% of traders are net-long with the ratio of traders long to short at 1.38 to 1. The number of traders net-long is 12.7% higher than yesterday and 17.1% higher from last week, while the number of traders net-short is 17.1% lower than yesterday and 19.9% lower from last week.
For more in-depth analysis, check out the Q1 2019 Forecast for the GBP
PRICES MAY CONTINUE TO FALL
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 Nancy Pakbaz, CFA, DailyFX Research
Follow Nancy on Twitter @ NancyPakbazFX
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.