What is GBPUSD sentiment?
GBPUSD sentiment shows the percentage of retail forex traders currently long (buying) versus short (selling) British Pound / US Dollar. Readings above 70 % or below 30 % mean positioning is heavily one-sided, which tells you where the crowd is concentrated — and, by extension, where stops are likely to be clustered.
How to use this data
Contrarian traders trade against extreme readings, on the theory that the crowd is wrong at extremes. We tested that theory against our own data and could not reproduce it (results here), so treat 46 % long GBPUSD as information about positioning rather than a signal. Sentiment is context for technical analysis, not a substitute for it.
About British Pound / US Dollar
GBP/USD, also known as 'Cable', represents the exchange rate between the British Pound and US Dollar.