Year-to-date, the GBP/USD is up about 5.3%. While the potential to extend these gains is there, the cable is now less than 70 pips away from testing a key long-term resistance zone between 1.3500 and 1.4000.

The Pound to Dollar exchange rate can continue to advance in the coming days according to our Week Ahead Model. Fedspeak and U.S. payrolls are the fundamental risks to the positive setup.

The British Pound extended its rally against the U.S. Dollar, but month-end flows and overbought conditions could prompt a pullback in the coming days.

The Dollar is under renewed pressure after two members of the Federal Reserve's interest rate setting committee (the FOMC) signalled the market was right to expect further interest rate cuts.