FXstreet.com (Barcelona) - The Sterling has continued with its rally against the Dollar during the American session and after rising around 0.95% so far today from 1.5955 opening price action, pair has hit fresh 1-week high at 1.6120. GBP/USD seems to be focus on testing September 30 high at 1.6125.
Currently the pair is trading just above 1.6100.
David Solin, analyst at FXA, comments: Nearer term, the market is consolidating from the late Sept low (and test of the neckline of the large head and shoulders near 1.5800), and as mentioned, there is scope for a few weeks of gains (potentially sharp) with the multi-month topping pattern. Note too that this fits the broader $ view of weakness into the mid Oct timeframe before completing a potentially major top (nearby gains in cable), while eur/gbp is seen as topping with at least a few weeks of correcting lower after (would help support cable).