GBPJPY buy

For most of April, retail investors have been unwinding short positioning in the British Pound, particularly against the US Dollar and Japanese Yen. This opened the door for Sterling to lose some ground. This can be demonstrated by taking a look at IG Client Sentiment (IGCS), a gauge of retail trader positioning.

IGCS is usually a contrarian indicator, meaning if short exposure is decreasing in an asset, prices could fall (and vice versa). Now, it seems like GBP/USD and GBP/JPY may be preparing to push higher.