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British Pound Outlook Calls for Further Gains

British Pound Outlook Calls for Further Gains

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GBPUSD: Retail trader data shows 42.3% of traders are net-long with the ratio of traders short to long at 1.37 to 1. The percentage of traders net-long is now its lowest since Mar 26 when GBPUSD traded near 1.2514. The number of traders net-long is 3.9% lower than yesterday and 25.8% lower from last week, while the number of traders net-short is 18.9% higher than yesterday and 30.2% higher from last week.

We typically take a contrarian view to crowd sentiment, 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 sentiment and recent changes gives us a stronger GBPUSD-bullish contrarian trading bias.

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