Retail trader data shows 70.7% of traders are net-long
GBPUSD: Retail trader data shows 70.7% of traders are net-long with the ratio of traders long to short at 2.41 to 1. In fact, traders have remained net-long since May 06 when GBPUSD traded near 1.29298; price has moved 1.3% lower since then. The number of traders net-long is 2.7% higher than yesterday and 20.2% lower from last week, while the number of traders net-short is 17.5% higher than yesterday and 44.5% higher from last week.
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GBP/USD: Reduction in net-longs suggests bullish 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. 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 Tammy Da Costa, DailyFX Research