FXstreet.com (Barcelona) - The Pound has performed a spectacular rally on Thursday, extending upmove from Oct 13 low at 1.5705 to 1.6300 high on European session. At te moment the Pound moves around 1.6255.

Resistance levels, at the moment, lie at 1.6285 (Sept 4 low) and above here, 1.6300 session high and 1.6325 (Sept 23 low). On the downside, support levels lie at 1.6223/00, and below here, 1.6155, and 1.6120/25 (Sept 30/Oct 8 highs).

After two days of rally, the Pound has entered overbought territory, and according to the Swiss e Trade Strategy Team, a bearish correction should not be discarded: The GBP / USD has been the most volatile of all the major pairs and we expect this high volatility to remain a factor in near-term trading. Despite the volatility in the GBP / USD, we feel that the pound is currently overvalued and will wait for a correction before considering a trade.