British pound surged yesterday trading versus the greenback rising from the day’s minimum at 1.5820 to maximum at 1.6048 and compensating all the losses it made last week.

Technical analysts at Mizuho Corporate Bank note that the pair GBP/USD broke through the weekly «flag» formation and got today above resistance at 1.6060. In their view, sterling’s going to strengthen more.

The specialists say that all elements of the weekly Ichimoku Cloud point at the necessity to buy pounds. Investors should, however, pay attention to the strong resistance all the way up to 1.7800. The monthly close at 1.6000 has slightly increased bullish momentum.

According to the bank, resistance levels are found at 1.6080, 1.6100 and 1.6170/85. In case the British currency declines, support levels will lie at 1.6000, 1.5950 and 1.5915.



Chart. Weekly GBP/USD

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