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    CFTC net positions for GBP in the UK improved from £-16.2K to £-13.9K

    by VT Markets
    /
    Feb 7, 2026
    The net positions for the British pound (GBP) in the UK have improved to £-13.9K, up from £-16.2K. This change means there are fewer short positions for the GBP, showing how traders’ views on the currency are shifting.

    Large Speculators Reducing Bets Against GBP

    Large speculators are cutting back on their bets against the British Pound. The net short position has decreased to -£13.9K from -£16.2K. This shift shows that hedge funds and other major investors are losing confidence in a weaker Pound. This change coincides with the UK’s latest inflation numbers, which dropped to 2.9%, surprising the market and indicating that the Bank of England’s policies are working. Additionally, January retail sales rose by 0.5%, countering worries about a slowdown in consumer spending. Together, these positive signs may lead to a fresh look at the UK’s economic future. This shift in attitude is a big change from last year, when fears of recession and inflation above 4% during the third quarter drove short-selling. The current trend shows that the idea of continuous economic decline may be changing.

    Impact on Options Traders and Future Strategies

    For options traders, this could mean lower implied volatility for the Pound. With less bearish sentiment, the cost of protecting against declines with put options might decrease. This makes strategies like selling cash-secured puts or credit put spreads on GBP futures more appealing for those who think the currency has found a bottom. Those holding short positions in GBP futures should take this as a warning and may want to tighten their stop-losses. While this information doesn’t promise a price increase, it clearly shows that the downward trend is losing strength. Traders looking to go long may want to watch for bullish technical patterns to signal a good entry point. Create your live VT Markets account and start trading now.

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