"GBP/USD Sentiment Points to Upside Potential"

In the GBP/USD market, retail trader data reveals that 49.62% of traders are holding long positions, resulting in a short-to-long ratio of 1.02 to 1. Notably, traders have maintained a net-short position since August 17 when GBP/USD was trading around 1.27, and the price has since decreased by 0.10%. Comparatively, the number of traders with long positions is now 25.05% lower than the previous day and 22.39% lower than the previous week. Conversely, the number of traders with short positions is 11.65% higher than the previous day and 22.64% higher than the previous week.

Our typical approach involves taking a contrarian stance based on crowd sentiment, and the fact that traders are currently net-short suggests there may be potential for GBP/USD prices to continue rising.

Our data indicates that traders have adopted a net-short position on GBP/USD for the first time since August 17, 2023, when GBP/USD was trading near 1.27. Notably, traders are more strongly net-short compared to both the previous day and week. Given the current sentiment and recent shifts, this reinforces our bullish contrarian trading bias on GBP/USD.

GBPUSD BUY 1.2700 - 1.2690 🔼🔼

✅TP1: 1.2730
✅TP2: 1.2780

🚫SL 1.2660