FXstreet.com (Barcelona) - European markets continue rallying on Wednesday buoyed by gains of Bank's shares, while the Pound has been hit hard by a historical rise on UK unemployment.

European markets are posting gains around 1.0% by midday in Europe with Eurostoxx 50 adding 0.87% and the German DAX Index 1.04% up. UBS, Swiss biggest bank and Unicredit have been among the largest winners.

On the macroeconomic front UK unemployment has risen at the fastest pace since 1971, and the Pound has plunged across the board.

Pound falls across the board

GBP/USD has dropped from 1.4075 to a new intra-week low at 1.3845 to pick up slightly and rise below 1.3900. The Pound has suffered from both the surprisingly high unemployment rate, and the EUR/GBP rally; the pair has broken 0.9320 resistance level and advances towards Jan 23 high at 0.9522, below all-time high at 0.9810.

EUR/USD The Euro has picked up after having hit intra day low at 1.2985, and the pair has returned above 1.3000 on the way to resistance level at 1.3075.

USD/JPY could cross above 98.55 resistance level and remains in range between there and 98.85.