Sterling prices are softer this week after testing downtrend resistance on Tuesday and although the risk remains for a deeper drive from here, the bears aren’t quite in control just yet.
Sentiment Long positions are3.8% higher than yesterday and 4.2% higher from last week Short positions are 9.1% lower than yesterday and 5.2% lower from last week The fact traders are net-long suggests GBP/USD prices may continue to fall. Traders are further net-long than yesterday & last week, and the combination of current positioning and recent changes gives us a stronger GBP/USD-bearish contrarian trading bias from a sentiment standpoint.