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Talking Points:
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GBP/USD Technical Strategy: Flat
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Support: 1.5664, 1.5551, 1.5444
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Resistance: 1.5801, 1.6021, 1.6241
The British Pound continues to rise in the wake of the UK general election, moving to the highest level in five months against the US Dollar. Near-term resistance is at 1.5801, the 76.4% Fibonacci expansion, with break above that on a daily closing basis exposing the 100% level at 1.6021. Alternatively, a reversal below the 61.8% Fib at 1.5664 opens the door for a challenge of the 1.5551-4 area (February 26 high, 50% expansion).
Risk/reward considerations argue against entering long with prices in close proximity to resistance. On the other hand, the absence of a defined bearish reversal signal suggests taking up the short side is premature. We will remain flat for now, waiting for an actionable opportunity to present itself.
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Daily Chart - Created Using FXCM Marketscope
--- Written by Ilya Spivak, Currency Strategist for DailyFX.com
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