FXstreet.com (Barcelona) - The GBP/USD rose on stronger-than-expected UK consumer-price inflation and Bank of England Governor Mervyn King's comments that sterling's recent decline had not been engineered and he saw no reason why the pound should go any lower.
The pair broke out of its downward sloping trading channel and reached the highest level since February 2 as the outlook for global banks has improved and risk appetite has increased. The RSI at 65 indicates the pair is getting overbought; however, a test of the 1.50 resistance is possible.
The GBP/USD could be more overbought if this is a bottom. There is support in the 1.45-area. The GBP/JPY broke resistance today after forming a long-term bottom, indicating further gains, said Hans Nilsson, analyst at CMS Forex.