UK CFTC data shows GBP non-commercial net positions at \u00a3-52.7K. The previous reading was \u00a3-58.4K.<\/p>\n
The net short position narrowed by \u00a35.7K. The figure remains below zero, meaning non-commercial traders still hold more short than long positions.<\/p>\n
We’re seeing a notable shift in sentiment toward the British Pound, as large speculators are becoming less bearish. The net short position has shrunk to -52.7k contracts from a more pessimistic -58.4k. This indicates that traders are closing out their bets against the currency.<\/p>\n
This change in positioning makes sense given the latest economic figures. The UK’s Q1 2026 GDP growth came in at a surprising 0.3%, avoiding the flat performance that was widely expected. March inflation also held steady at 2.8%, calming fears of a renewed price surge and adding a layer of stability.<\/p>\n
As a result, we are adjusting our expectations for the Bank of England’s actions this year. The market is now pricing in a lower probability of an interest rate cut before the fourth quarter, a significant change from just a month ago. This makes holding the pound relatively more attractive.<\/p>\n
We can see a similar dynamic when we look back at the market recovery in late 2025. After a period of extreme pessimism, a similar reduction in short positions preceded a steady rally in the GBP\/USD exchange rate. The current setup is showing parallels to that previous turning point.<\/p>\n
For those trading derivatives, this is a signal to reduce outright short exposure on the pound. It may be a good time to consider buying call options on GBP, as this provides a defined-risk way to position for a potential relief rally in the coming weeks.<\/p>\n
Create your live VT Markets account<\/a>\u00a0and\u00a0start trading<\/a>\u00a0now. <\/b><\/p>\n","protected":false},"excerpt":{"rendered":" CFTC data shows GBP non-commercial net shorts narrowed to -52.7K from -58.4K, still bearish overall.<\/p>\n","protected":false},"author":103,"featured_media":17034,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[59],"tags":[],"class_list":["post-46495","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-live-updates"],"acf":{"acf_article_selection_author":null},"aioseo_notices":[],"aioseo_head":"\n\t\t\n\t\n\t\n\t\n\t\n\n\t\t