FX.co ★ Sterling Bears Retreat as CFTC Data Shows Reduced Net Short Positions on GBP

Speculative traders have scaled back their bearish bets on the British pound, according to the latest Commitments of Traders (CFTC) data released on 30 January 2026. Net speculative positions in GBP improved to -16.2K, up from the previous reading of -22.0K.

The shift suggests that while sentiment toward sterling remains negative overall, pessimism is easing as fewer traders maintain outright short exposure. The reduction in net short positions may reflect a reassessment of the UK currency’s downside potential, with market participants appearing slightly less convinced about further pound weakness in the near term.

Investors will now watch upcoming macroeconomic data and Bank of England signals to gauge whether this moderation in bearish positioning marks the start of a more sustained turn in sentiment toward the UK currency, or simply a pause in broader negative positioning trends.