Weekly Summary of Forex Trader Sentiment and Changes in Positioning
IG Client Sentiment data shows the majority of traders are now net-long the British Pound versus the US Dollar—breaking a two-month trend. A contrarian view of ‘crowd’ sentiment warns of declines.
If most traders are long we prefer to be short and vice-versa. And major GBP/USD tumbles following a shock-result in the UK Elections have been met with aggressive buying. It would take a fairly significant subsequent shift in the opposite direction to shift us from our short-term bearish GBP/USD price forecast.
See the links below for our sentiment-based forecasts for the British Pound as well as the Euro, Yen, Australian Dollar, Gold Price, and US SP 500.
EURUSD – Our Euro Forecast may Shift as Traders Show Change of Heart
GBPUSD – British Pound Forecast to Continue Lower on Key Shift
USDJPY – Japanese Yen Rally May be Overdone, but Trend Remains Clear
Spot Gold – Gold Price Outlook Unclear until this Changes
AUDUSD – Australian Dollar Forecast to Rally Further
SP 500 – SP Remains a Buy until this Changes
Why and how do we use IG Client Sentiment in trading? See our guide and real-time data.
— Written by David Rodriguez, Senior Strategist for DailyFX.com
Contact David via
Twitter at https://www.twitter.com/DRodriguezFX