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.
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
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