Retail is 86% Long on GBPCHF… But Smart Money Is Setting a Trap

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📊 1. RETAIL SENTIMENT
Long Positions: 86% – Average Entry: 1.1196

Short Positions: 14% – Average Entry: 1.0999

Current Price: 1.1010

Analysis:
Retail positioning is heavily skewed towards longs, with the average long entry significantly above the current market price. This creates vulnerability to downside pressure through stop-loss hunting or a bearish squeeze. Such extreme retail bias often acts as a contrarian signal: smart money may continue pushing the price lower to flush out retail traders before any meaningful reversal occurs.

🧾 2. COMMITMENTS OF TRADERS – COT REPORT (June 10, 2025)

🔹 British Pound (GBP)
Non-Commercials (Speculators): Net Long increasing by +7.4K → now at +51.6K

Commercials (Hedgers): Net Short decreasing by -13.9K → now at -60.5K

Total Open Interest: Decreased by -19K

Interpretation:
Speculators are maintaining strong long exposure on GBP, while commercials are covering some shorts—potentially signaling a short-term pause in bullish momentum. However, the drop in overall open interest suggests possible consolidation or short-term uncertainty.

🔹 Swiss Franc (CHF)

Non-Commercials: Net Shorts reduced by -2.7K

Commercials: Net Longs increased by +2.5K

Total Open Interest: Increased by +5.6K

Interpretation:
The CHF is gaining strength. Commercial participants are increasing their long exposure while speculators reduce their shorts—this positive divergence supports a bullish outlook on CHF, especially against retail-heavy long pairs like GBP.

📈 3. CHF SEASONALITY – JUNE
Average CHF Performance in June:

20-Year Avg: +0.0099

15-Year Avg: +0.0138

10-Year Avg: +0.0099

5-Year Avg: +0.0039

Analysis:
Historically, June is a seasonally strong month for the Swiss Franc. This seasonal bias aligns with current macro conditions, reinforcing the bullish case for CHF.

📊 4. TECHNICAL ANALYSIS (Daily Chart)

Pattern: Descending channel with a recent false breakdown and re-entry

Key Support Zone: 1.0980–1.1000 → tested and defended with a bullish wick

Target Resistance: 1.1170–1.1200 → prior retail cluster, supply zone, and average long entry

Scenario: A confirmed breakout of the channel could trigger a short squeeze toward 1.1170–1.1200

📌 STRATEGIC OUTLOOK

The current GBP/CHF setup is technically and sentimentally delicate. The price sits on a major daily demand zone, while sentiment and macro flows suggest downside pressure remains in play—but also allow room for a potential contrarian rally (short squeeze).

👉 Action Plan:
Wait for intraday/daily confirmation:

Go long above 1.1045 (breakout confirmation) → target 1.1170

Go short below 1.0980 (bearish continuation) → target 1.0860

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