GBP/USD: 83% of Traders are Net-Long Suggesting Further Depreciation of Sterling against the Dollar
GBP/USD: Net-Long Positions Increase 25.4% from Last Week
GBP/USD: Retail trader data shows 82.8% of traders are net-long with the ratio of traders long to short at 4.81 to 1. In fact, traders have remained net-long since May 06 when GBP/USD traded near 1.29115; price has moved 3.3% lower since then. The number of traders net-long is 8.7% higher than yesterday and 25.4% higher from last week, while the number of traders net-short is 6.7% higher than yesterday and 17.1% lower from last week.
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GBP/USD: Sentiment Ponts to Further GBP Declines
We typically take a contrarian view to crowd sentiment, and the fact traders are net-long suggests GBP/USD 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 GBP/USD-bearish contrarian trading bias.
-Written by Tammy Da Costa, DailyFX Research
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.