TRADERS REMAIN NET-LONG
GBPUSD: Retail dealer knowledge reveals 64.5% of merchants are net-long with the ratio of merchants lengthy to brief at 1.82 to 1. In reality, merchants have remained net-long since Feb 04 when GBPUSD traded close to 1.29565; worth has moved zero.6% decrease since then. The variety of merchants net-long is 25.6% larger than yesterday and 20.2% decrease from final week, whereas the variety of merchants net-short is 6.7% decrease than yesterday and 54.2% decrease from final week.
For extra in-depth evaluation, take a look at the Q1 2019 Forecast for the GBP
GBPUSD: SENTIMENT SUGGESTS BEARISH TRADING BIAS
We usually take a contrarian view to crowd sentiment, and the very fact merchants are net-long suggests GBPUSD 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 provides us a stronger GBPUSD-bearish contrarian buying and selling bias.
— Written by Nancy Pakbaz, CFA, DailyFX Analysis
Observe Nancy on Twitter @NancyPakbazFX