Weekly Summary of Forex Trader Sentiment and Changes in Positioning
IG Client Sentiment data shows the majority of traders are now net-long the British Pound versus the US Dollar—breaking a two-month trend. A contrarian view of ‘crowd’ sentiment warns of declines.
If most traders are long we prefer to be short and vice-versa. And major GBP/USD tumbles following a shock-result in the UK Elections have been met with aggressive buying. It would take a fairly significant subsequent shift in the opposite direction to shift us from our short-term bearish GBP/USD price forecast.
See the links below for our sentiment-based forecasts for the British Pound as well as the Euro, Yen, Australian Dollar, Gold Price, and US S&P 500.
EURUSD - Euro Traders Once Again Sell - We Prefer to Buy
GBPUSD - British Pound Forecast Hinges on the Crowd’s Next Move
USDJPY - US Dollar Likely to Fall even Further versus Japanese Yen
Gold Price - Looks Likely to Rally Further
AUDUSD - Australian Dollar Outlook Unclear until this Changes
S&P 500 - Forecast Shifts Sharply as Traders Change Direction
Why and how do we use IG Client Sentiment in trading? See our guide and real-time data.
--- Written by David Rodriguez, Senior Strategist for DailyFX.com
Contact David via
Twitter at http://www.twitter.com/DRodriguezFX
