FXstreet.com (Barcelona) - The Sterling's rally against the Greenback from daily low at 1.6345 in the Asian session has been capped at 5-week high at 1.6635 during the American session. Currently the pair is trading on consolidation mode below 1.6600 level, close to 1.6570.
James Chen, Chief Technical Strategist at FX Solutions, comments: If the current bullishness in the pair continues, GBP/USD should join the other pairs in the general trend of dollar-weakening. A major near-term upside target resides in the 1.6740 price region, which is the approximate shoulder top of the current consolidation. A breakout above that level would confirm a medium-term uptrend continuation, and should target further resistance around the top of the failed head & shoulders, around 1.7040. Strong downside support currently continues to reside in the 1.6100 price region.