GBP/USD: Retail dealer knowledge exhibits that 72% of merchants are net-long
GBP/USD: Retail dealer knowledge exhibits 72.0% of merchants are net-long with the ratio of merchants lengthy to brief at 2.57 to 1. In truth, merchants have remained net-long since Could 06 when GBPUSD traded close to 1.29855; value has moved 5.9% decrease since then. The variety of merchants net-long is 3.3% larger than yesterday and 6.5% decrease from final week, whereas the variety of merchants net-short is 3.6% decrease than yesterday and 5.5% larger from final week.
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GBP/USD: Sentiment suggests bearish buying and selling bias
We usually take a contrarian view to crowd sentiment, and the very fact merchants are net-long suggests GBP/USD costs might proceed to fall. Merchants are additional net-long than yesterday and final week, and the mix of present sentiment and up to date modifications offers us a stronger GBP/USD-bearish contrarian buying and selling bias.
-Written by Tammy Da Costa, DailyFX Analysis