GBPUSD: Prices May Continue to Fall
TRADERS REMAIN NET-LONG
GBPUSD: Retail trader data shows 64.5% of traders are net-long with the ratio of traders long to short at 1.82 to 1. In fact, traders have remained net-long since Feb 04 when GBPUSD traded near 1.29565; price has moved 0.6% lower since then. The number of traders net-long is 25.6% higher than yesterday and 20.2% lower from last week, while the number of traders net-short is 6.7% lower than yesterday and 54.2% lower from last week.
For more in-depth analysis, check out the Q1 2019 Forecast for the GBP
GBPUSD: SENTIMENT SUGGESTS BEARISH TRADING 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 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.