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British Pound Forecast Hinges on the Crowd’s Next Move

British Pound Forecast Hinges on the Crowd’s Next Move

Why and how do we use IG Client Sentiment in trading? See our guide and real-time data.

GBPUSD: Retail trader data shows 50.1% of traders are net-long with the ratio of traders long to short at 1.01 to 1. The number of traders net-long is 5.3% lower than yesterday and 1.6% higher from last week, while the number of traders net-short is 11.4% higher than yesterday and 0.8% lower from last week.

We typically take a contrarian view to crowd sentiment, and the fact traders are net-long suggests 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.

See next article in this week’s report:USDJPY – US Dollar Likely to Fall even Further versus Japanese Yen

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