GBP/USD sentiment flips from short to long
Midway through the trading week, we update Client Sentiment levels - percentage of tastyfx clients with long or short positions - for major forex pairs like EUR/USD, USD/JPY, and more. Find out what traders are thinking this week.
Forex sentiment update
GBP/USD is trading back under recent highs of 1.3100, but still above June's trading range. Traders believe there is still upside for the British pound as client sentiment grows to 51% long against the US dollar.
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How client sentiment works
Client Sentiment shows the percentage of tastyfx client accounts with open positions that are currently long or short. If the majority of client accounts with open positions are long a given market, then they expect the price to rise; if the majority is short, then they expect it to fall. (Values taken using tastyfx's Client Sentiment measure as of the previous day's close.)
Trend followers might go with sentiment, while contrarians would tend to go against the trend. For example, a 65% long measure in EUR/USD could reflect a buying opportunity for trend followers or a selling opportunity for contrarians.
EUR/USD sentiment - 55% short
Last week's sentiment: 74% short
Euro sentiment against US dollar has grown 19% in the past week. More traders feel EUR/USD can move higher after the pair has moved over 400 pips lower since last Wednesday.
GBP/USD sentiment - 51% long
Last week's sentiment: 59% short
Traders are split in GBP/USD expectations - slightly more traders favoring the British pound over the US dollar. The pair is gaining this week after a decline last week.
USD/JPY sentiment - 60% short
Last week's sentiment: 52% short
Eight percent more traders are long USD against JPY after last week's rally above 141.00. Late week price action is possible as both countries decide interest rates - the US expected to hike and Japan forecasted to stay.
USD/CHF sentiment - 87% long
Last week's sentiment: 89% long
USD/CHF continues to trade below 0.8700, and sentiment remains predominantly long.
AUD/USD sentiment - 62% long
Last week's sentiment: 54% long
Australian sentiment grows even after lower-than-expected inflation data earlier this week. Traders expect the pair to gain ahead of next week's interest rate decision from the Reserve Bank of Australia.
USD/CAD sentiment - 59% long
Last week's sentiment: 65% long
USD/CAD has spent the past two weeks hovering around 1.3200. Traders continue to believe in the US dollar, and for the pair to gain towards 2023 highs over 1.3800.
How to trade client sentiment
- Open an account to get started, or practice on a demo account
- Choose your forex trading platform
- Open, monitor, and close positions on forex pairs
Trading forex requires an account with a forex provider like tastyfx. Many traders also watch major forex pairs like EUR/USD and USD/JPY for potential opportunities based on economic events such as inflation releases or interest rate decisions. Economic events can produce more volatility for forex pairs, which can mean greater potential profits and losses as risks can increase at these times.
You can help develop your forex trading strategies using resources like tastyfx’s YouTube channel. Once your strategy is developed, you can follow the above steps to opening an account and getting started trading forex.
Your profit or loss is calculated according to your full position size. Leverage will magnify both your profits and losses. It’s important to manage your risks carefully as losses can exceed your deposit. Ensure you understand the risks and benefits associated with trading leveraged products before you start trading with them. Trade using money you’re comfortable losing.
This information has been prepared by tastyfx, a trading name of tastyfx LLC. This material does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. You should not treat any opinion expressed in this material as a specific inducement to make any investment or follow any strategy, but only as an expression of opinion. This material does not consider your investment objectives, financial situation or needs and is not intended as recommendations appropriate for you. No representation or warranty is given as to the accuracy or completeness of the above information. tastyfx accepts no responsibility for any use that may be made of these comments and for any consequences that result. See our Summary Conflicts Policy, available on our website.
