FXstreet,com (Barcelona) - The Pound is climbing at a strong pace on early European trade and rebound at 1.6185 low on Monday has extended above 1.6335 as the pair reached 1.6375 week high.

Next resistance area lies at 1.6380 (Aug 28 high), and above here, 1.6400 and 1.6440 (Aug 25 high). On the downside, support levels lieat 1.6255 session low, and below here, 1.6180 (Aug 31 low) and 1.6150 (Aug 27 low).

According to Karen Jones, technical analyst at Commerzbank, Pound rallies will remain capped around 1.6367/1.6447: The market will remain directly offered intraday while capped by 1.6367/1.6447 (resistance line and 55 day ma). Technical indicators are negative and the MACD is below zero for the first time since March.