GBP/USD: Retail trader data shows that 72% of traders are net-long
GBP/USD: Retail trader data shows 72.0% of traders are net-long with the ratio of traders long to short at 2.57 to 1. In fact, traders have remained net-long since May 06 when GBPUSD traded near 1.29855; price has moved 5.9% lower since then. The number of traders net-long is 3.3% higher than yesterday and 6.5% lower from last week, while the number of traders net-short is 3.6% lower than yesterday and 5.5% higher from last week.
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GBP/USD: Sentiment suggests 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
