GBP/USD: Traders continue to remain net-long
GBP/USD: Net-short positions increase by 27% from last week
GBP/USD: Retail trader data shows 70.5% of traders are net-long with the ratio of traders long to short at 2.4 to 1. In fact, traders have remained net-long since May 06 when GBP/USD traded near 1.29855; price has moved 6.5% lower since then. The number of traders net-long is 2.9% lower than yesterday and 9.6% lower from last week, while the number of traders net-short is 18.7% higher than yesterday and 27.4% higher from last week.
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GBP/USD: Trend may reverse higher despite the fact that traders remain net-long
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
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.