Traders Remain Net-Long Despite Falling Prices


GBP/USD IG Client Sentiment

GBP/USD: Net-Short Positions Increase by 8.5% from Last Week

GBP/USD: Retail trader data shows 75.8% of traders are net-long with the ratio of traders long to short at 3.14 to 1. In fact, traders have remained net-long since May 06 when GBP/USD traded near 1.29928; price has moved 7.0% lower since then. The number of traders net-long is 0.3% lower than yesterday and 1.7% lower from last week, while the number of traders net-short is 16.2% higher than yesterday and 8.5% higher from last week.

To gain more insight in how we use sentiment to supplement a strategy, join us for one of our weekly webinars on how to “Identify Trends with Sentiment”:

Wednesday 00:00 GMT

Thursday 15:00 GMT

(click on one of the above times to enroll)

GBP/USD: Trend May Reverse Higher according to Sentiment

We typically take a contrarian view to crowd sentiment, and the fact traders are net-long suggests GBP/USD prices may continue to fall. Yet traders are less net-long than yesterday and compared with last week. Recent changes in sentiment warn that the current GBP/USD price trend may soon reverse higher despite the fact traders remain net-long.

-Written by Tammy Da Costa, DailyFX Research

Leave a Reply

Your email address will not be published. Required fields are marked *

+ 24 = 26