The British Pound continued to push higher against the US Dollar, soaring to the highest level in nearly five years. Buyers poised to test resistance at 1.6998, the 61.8% Fibonacci expansion, with a break above that exposing the 76.4% level at 1.7053. Alternatively, a reversal below the 50% Fib at 1.6952 aims for the 38.2% expansion at 1.6907.
The available trading range is too narrow to justify a position at current levels from a risk/reward perspective given volatility as implied by 20-day ATR. With that in mind, we will remain on the sidelines for the time being.