There is expected to be much volatility today and tomorrow as results from the general election start to filter through.
Based on recent polls the election will probably result in a hung parliament with neither of the major parties winning a clear majority.
It is then probable that Labour and the SNP will do a deal and create a new coalition government. Labour is more pro-E.U than the other main party so this will probably be positive for sterling.
Although there may be qualms about labour's record on the economy I still see sterling strength as the most likely outcome initially as the threat of a referendum on E.U membership recedes.
Regardless of the outcome, the technical picture is undecided, with a slight bias to the upside: on the one hand we remain within an up-trend from the April 13 lows, although the recent pull-back has been strong and led to the formation of a v.short-term down-trend.
It could go either way from here, but a break above the 1.5290 highs would break the mini-correction and mark a resumption higher to major resistance at 1.5380.
Alternatively a break below the May 4 lows at 1.5089 could see an extension lower to support at 1.4950.