GBPUSD –Sideways trading in the British Pound/US Dollar has produced wide swings in forex market sentiment, leaving our short-term bias somewhat unclear. The ratio of long to short positions in the GBPUSD stands at 1.37 as nearly 58% of traders are long. Yesterday, the ratio was at 1.55 as 61% of open positions were long. In detail, long positions are 8.0% lower than yesterday and 5.3% weaker since last week. Short positions are 3.6% higher than yesterday and 16.1% weaker since last week. Open interest is 3.4% weaker than yesterday and 4.4% below its monthly average. The fact that the majority of traders remain short gives us a modestly bearish contrarian bias, but the very recent swing towards short positions effectively moderates our view.
