FXstreet.com (Barcelona) - The Pound continues rallying higher during European morning and recovery from Thursday's low at 1.5895 has extended above 1.6155 (Jan 5 high), to session high at 1.6180 so far.

Once above 1.6180, next resistance level comes at 1.6235/45 (Dec 31/Jan 4 high), and above here, 1.6300 and 1.6340/45 (Dec 10/11 high). On the downside, support levels lie at 1.6110 (Jan 8 high) and below here,1.6060/70 (Jan 4 low/ Jan 6&7 high) and 1.6045.

On a wider point of view, Karen Jones, technical analyst at Commerzbank expects Pound's rally to fail at 1.6363 (55 day ma): We look for the market to now remain capped by 1.6363 (55 day ma) for the negative bias to persist (initial resistance lies at 1.6232/42).

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