The Cable is making vast strides to the upside, positioning itself for a breakout opportunity as it continues to bask in the glory of this month's all-around positive economic data from Britain. The GBP/USD is battling with our 2nd tier uptrend line as we speak.

If the currency pair can climb above April and February highs we could witness some large near-term gains as it looks to tackle the highly psychological 1.50 level.

The relative strength of the Pound is reflected in the freefall of the EUR/GBP. However, we wouldn't be surprised to see the EUR/GBP find some solid near-term support, meaning that if the GBP/USD does break out, the rally could experience some profit-taking relatively quickly.

That being said, Britain only has two medium-weight economic releases on slate for this week, meaning that Cable should have little news to deflect its rise.

The only development fundamentally reversing the Cable's rally in the near-term would be a sharp downturn in U. S. equities, so keep a close eye on the S&P futures.

Fundamentally, we maintain resistance of 1.4946 with additional resistances hanging at 1.4988, 1.5028, 1.5080 and 1.5121. The 1.50 level serves as a key psychological barrier while the 1.45 area acts as a psychological cushion. To the downside, we find supports of 1.4883, 1.4834, 1.4770, 1.4730 and 1.4676. The GBP/USD is currently exchanging at 1.4902.

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