GBP/USD: Traders Remain Net-Long Despite Falling Prices
GBP/USD: Net-Short Positions Increase by 8.5% from Last Week
GBP/USD: Retail trader data shows 75.8% of traders are net-long with the ratio of traders long to short at 3.14 to 1. In fact, traders have remained net-long since May 06 when GBP/USD traded near 1.29928; price has moved 7.0% lower since then. The number of traders net-long is 0.3% lower than yesterday and 1.7% lower from last week, while the number of traders net-short is 16.2% higher than yesterday and 8.5% higher from last week.
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GBP/USD: Trend May Reverse Higher according to Sentiment
We typically take a contrarian view to crowd sentiment, and the fact traders are net-long suggests GBP/USD 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 GBP/USD price trend may soon reverse higher despite the fact traders remain net-long.
-Written by Tammy Da Costa, DailyFX Research
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.