GBP/USD: Traders Remain Net-Long Since May
GBP/USD: Retail Data shows 79.9% of Traders are Net-Long
GBP/USD: Retail trader data shows 79.9% of traders are net-long with the ratio of traders long to short at 3.97 to 1. In fact, traders have remained net-long since May 06 when GBPUSD traded near 1.28987; price has moved 3.0% lower since then. The number of traders net-long is 2.0% higher than yesterday and 2.0% lower from last week, while the number of traders net-short is 2.6% lower than yesterday and 11.3% higher from last week.
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GBP/USD: Sentiment Suggests Further Bearish Trading Bias
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.