FXstreet.com (Barcelona) - The pound has rallied during the last two days after setting a base at 1.6340 to pare loses with Tuesday and Wednesday's sell-off and return to intra-week highs approaching 4-week high at 1.6585 level which, according to Karen Jones, technical analyst at Commerzbank, will most likely, cap Pound's rally. Jones advances the scenario of a pound Capped at 1.6585 area with pull downs below 1.6300: "GBP/USD is again challenging the Fibonacci retracement resistance at 1.6585 (78.6% retracement), we look for this to hold and while below here our negative bias remains. Intraday dips will find minor support at 1.6265/75 (55 day ma) – failure here casts the market back into the lower half of its recent range targeting 1.6117, 1.5965, 1.5800 (range lows and 4 month uptrend). On the upside, breach of 1.6585 would open doors to 1.6725/6840: "Above 1.6585 will introduce scope for another runup to 1.6740/1.6825 (recent high and long term Fibo) if seen we will look for failure here."

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