Talking Points:
The British Pound has moved to challenge April’s highs against the US Dollar, buoyed by early results from the UK general election. A daily close above the 38.2% Fibonacci expansion at 1.5444 exposes the 1.5551-54 area (50% level, February 26 high). Alternatively, a turn below the 23.6% Fib at 1.5308 clears the way for a test of the 14.6% Fib at 1.5224.
Prices are too close to resistance to justify entering long from a risk/reward perspective. On the other hand, the absence of a defined bearish reversal signal suggests that taking up the short side is premature. With that in mind, we will remain flat for now.