EUR/GBP Price Action Set-Ups Ahead Of BoE Rate Decision

EUR/GBP 4 Hour Chart

EUR/GBP 4 hour chart

Chart prepared by Richard Snow, IG

 

SENTIMENT REMAINS ‘MIXED’ DESPITE STRONG LONG SENTIMENT

EUR/GBP sentiment data

  • EUR/GBP: Retail trader data shows 65.42% of traders are net-long with the ratio of traders long to short at 1.89 to 1
  • We typically take a contrarian view to crowd sentiment, and the fact traders are net-long suggests EUR/GBP prices may continue to fall.
  • However, the number of traders net-long is 15.54% higher than yesterday and 3.81% lower from last week, while the number of traders net-short is 17.53% lower than yesterday and 0.91% higher from last week.
  • Positioning is more net-long than yesterday but less net-long from last week. The combination of current sentiment and recent changes gives us a further mixed EUR/GBP trading reading.
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