FXstreet.com (Barcelona) - The Pound is gathering momentum against the Dollar and, after having hit 1.4515 low on early European session the Pound has re-entered levels above 1.4600 ahead of the U.S. session opening, getting back most of the losses posted during Asian trading hours.

On the upside, the Pound might find resistance at 1.4655 and above here, 1.4710 (Apr 271 high) and 1.4740/50 before 1.4770 (Apr 24 high). On the downside, immediate support lies at 1.4575, and below here, 1.4515, and 1.4440 (Apr 23 low).

Nicole Elliott, senior technical analyst at Mizuho Corporate Bank expects consolidation around current levels for the rest of the week: Consolidating fairly neatly around 1.4600, despite some sharp intra-day moves, and above the top of the Ichimoku 'cloud'. Expect more of the same this week noting that Sterling is no longer overbought and momentum remains bullish so that longer term we continue to feel Cable should trade higher.

Elliott points out to a weekly close above 1.5000 to anticipate a GBP/USD rally: What it needs is a little help from rallies in other major currencies and a weekly close above 1.5000. This should send many off to re-think this currency pair in particular (and the value of the US dollar) and UK plc generally.

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