By Gary Howes

Momentum has swung back in favour of the pound dollar rate once again. We look at today's latest news and look for clues as to where the next possible levels lie.

"Important support at 1.6470 was tested earlier this week and prompted a bounce which is now approaching resistance at 1.6599. A break above this would open the way to 1.6684," says a note from UBS released today.

The rally in the UK pound comes after what has been a trying month of March for GBP-USD; all indicators suggest that we are likely to see momentum return back in favour of the UK unit through month end.

As we note further down in this article, the carry trade appears to have come back in favour and this is the prime reason support has been sucked out of the USD over the past week or so.