FXstreet.com (Barcelona) - Pound's rally from 1.6615 low on early Asian session has capped at fresh 3-month high 1.6845 and the Sterling is pulling down at the moment reaching levels below 1.6800, trading at 1.6795 at the moment of writing.

According to Peter Rosentreich, technical analyst at ACM - Advanced Currency Markets, The pound could re-test 1.7041 year high if support level at 1.6740 holds: Focus now turns to its 1.7041 year-to-date high, with 1.6740 now providing decent support below. RSI still not quite at overbought levels (68 last) so bullish momentum has further room to go.

Resistance levels, according to Rosentreich, lie at 1.6900, 1.7041 and 1.7400. On the downside, support levels lie at 1.6400, 1.6260 and 1.6200.