FXstreet.com (Barcelona) - Sterling's rally from 1.6325 intra-day low ahead of European session, has extended 250 pips to a fresh 2-week high at 1.6575. At the moment, the Pound trades at 1.6550; 1.39% above its day-opening price.

Acccording to Peter Rosentreich, technical analyst at ACM - Advanced Currency Markets, the Pound might be forming a head and shoulders pattern on the daily chart: We have also been discussing a potential head and shoulders where we would like to see a neckline between 1.5947 and 1.5985, but after the pairs rally to back above 1.6435, we can say that for now the visit to 1.6115 is close enough for a neckline. The top of the shoulder on this head and shoulders would come in between 1.6663 and 1.6745 so should we get there expect some sensible short interest from anybody who is paying attention the the long term state of the UK economy.

Resistance levels, according to Rosentreich, lie at 1.6625, and above here, 1.6663 and 1.6745. On the downside, support levels lie at 1.6280, and below here, 1.6235 and 1.6115.