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"The SNB action helps the dollar, principally because it will create more pressure for the euro downwards, so it adds downside pressure on Cable (sterling/dollar)."
- Societe Generale (based on Reuters)
Pair's Outlook
As it turned out, the Pound failed to extend the rally from the monthly S3 and instead negated most of the Wednesday's gains. Nonetheless, the bias in the short run is to the upside, considering a strong support at 1.5145. The first resistance that can end the recovery is at 1.5315, represented by the monthly S2 and followed by a dense supply area at 1.5444, where the monthly S1 coincides with the multi-month down-trend.
Traders' Sentiment
A dip in Sterling's value prompted an increase in the share of long positions held among the SWFX market participants from 55 to 58%. The distribution between the buy and sell orders is more or less the same as yesterday—44 to 56%, respectively.
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