The British Pound is cautiously edging higher against the US Dollar having put in a Bullish Engulfing candlestick pattern. Near-term resistance is at 1.5459, the 23.6% Fibonacci expansion, with a break above that on a daily closing basis exposing the 38.2% level at 1.5638. Alternatively, a reversalback below the 14.6% Fib at 1.5349 opens the door for a challenge of the June 1 low at 1.5170.
The available trading range is too narrow to justify entering a trade on the long or short side from a risk/reward perspective. With that in mind, we will remain flat for now, waiting for price action to offer a more compelling opportunity down the road.