Published On: Thu, Jan 11th, 2018

Sentiment Shifts, Pound May Rally

Sentiment Shifts, Pound May Rally

GBPUSD: Retail trader data shows 37.8% of are net-long with the ratio of short to long at 1.65 to 1. In fact, have remained net-short since Dec 28 when GBPUSD traded near 1.33732; price has moved 1.2% higher since then. The number of traders net-long is 7.0% lower than yesterday and 15.3% lower from last week, while the number of traders net-short is 0.7% higher than yesterday and 4.9% lower from last week.

We typically take a contrarian view to crowd , and the fact traders are net-short suggests GBPUSD prices may continue to rise. Traders are further net-short than yesterday and last week, and the combination of current and recent changes gives us a stronger GBPUSD-bullish contrarian trading bias.

— Written by Dylan Jusino, DailyFX Research

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