FXstreet.com (Barcelona) - The Pound is showing strength on early European session times, performing a 100 pips rally to test Mar 6 high at 1.4305 from levels around 1.4200.

If the pound manages to remain above 1.4300, 1.4365/85 (Feb 23 high) would be the level to observe. On the downside, a correction move could pull the Pound down, below 1.4235, to test intra-day low at 1.4160, and below there, 1.4100 and 1.4060 could be next support levels.

Nicole Elliott, senior technical analyst at Mizuho Corporate Bank adverts the posibility of a squeeze higher for the Pound: Closing above the 9-day and 26-day moving averages though still within the downward-sloping 'wedge' as the pound trails badly because it is seen as the sickest and most vulnerable to financial turmoil. A narrower Ichimoku 'cloud' suggests prices will eventually manage a squeeze higher.