FXstreet.com (Barcelona) - Pound's rally from 1.6115 low on September the 2nd has extended on Monday, as the Sterling reached two weeks high at 1.4445 on early European session, and, According to Karen Jones, technical analyst at Commerzbank, the pair could be capped at that level before heading lower.

According to Jones, the Pound´s latest rally is corrective in nature: GBP/USD at the end of last week started to rally - however this is viewed as corrective only and is expected to terminate at 1.6441/70 - this is the location of the 55 day ma and the 38.2% retracement of the move down from the August peak. While capped here, the market will remain directly offered.

On the downside, Jones points out to 1.5985/1.5800 as initial targets. Targets remain 1.5985/1.5800/1.5690 en route to 1.5275. Technical indicators are negative and the MACD is below zero for the first time since March. Above 1.6470 (not favoured) would delay our outlook and allow for a deeper retracement to 1.6620/1.6700 ahead of failure.