FX.co ★ Speculators Trim Net Short Bets on Pound as CFTC Data Show Positions Narrowing

Speculative traders have reduced their net short exposure to the British pound, according to the latest Commitments of Traders data released by the CFTC on 24 July 2026. Net speculative positions in GBP improved from -71.3K contracts previously to -55.6K, signaling a moderation in bearish sentiment toward the currency.

The shift suggests that some market participants are either closing out short positions or cautiously increasing long exposure, even though the overall stance on the pound remains net short. The move may reflect changing expectations around UK economic conditions, interest rate prospects, or relative performance against other major currencies, as investors reassess the outlook for sterling in global FX markets.

While the improvement from deeper negative territory is notable, the still-sizeable net short reading highlights lingering skepticism over the pound’s medium-term trajectory. Traders will be watching upcoming UK data and central bank communications for confirmation on whether this reduction in bearish bets marks the start of a more sustained repositioning.