NET-LONG POSITIONS ARE 5.8% LOWER FROM LAST WEEK
GBPUSD: Retail trader data shows 80.4% of traders are net-long with the ratio of traders long to short at 4.09 to 1. In fact, traders have remained net-long since May 06 when GBPUSD traded near 1.30315; price has moved 2.2% lower since then. The number of trader’s net-long is 0.8% higher than yesterday and 5.8% lower from last week, while the number of trader’s net-short is 4.8% higher than yesterday and 15.7% lower from last week.
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GBPUSD: SENTIMENT SUGGESTS A MIXED TRADING BIAS
We typically take a contrarian view to crowd sentiment, and the fact traders are net-long suggesting GBPUSD prices may continue to fall. Positioning is less net-long than yesterday but more net-long from last week. The combination of current sentiment and recent changes gives us a further mixed GBPUSD trading bias.
-Written by Warren Venketas, DailyFX Research