FXstreet.com (Barcelona) - Sterling's rebound from 1.62660 low on Tuesday has extended 240 pips higher on early European trading with the Pound reaching 1.6500 area.

The Pound lies at the moment right above key resistance area at 1.6470/90, which, according to Carol Harmer, technical analyst at Charmer Charts.com, could attract short-term buyers: Today there is resistance located at 1.6474/90. Within this band previous buyers will be looking to cover longs. Now from this point you may see the market edge lower once more back to 1.6385 region.

On the upside, if the Pound manages to break 1.6470/90, Harmer foresees longs taking over at about 1.6520: Now if above the 1.6470/90 region look for this to come higher with 1.6510/20 as your first objective. Here cover all longs. Re-instate longs above 1.6520 for 1.6565/85.