In early European trading, the British pound rallied strongly versus its main rivals on dollar’s wide drop and regional stocks’ rise.

European stocks edged higher today. Thus, the U.K.'s FTSE 100 index gained by 0.57%, Germany's DAX index rose 0.35% and France's CAC 40 index jumped 0.30%.

The pound advanced to more than a 5-week high of 1.4889 against the US dollar by 3:45 am ET and the next likely resistance level for the pair is seen at 1.55. The cable that closed yesterday's deals at 1.4827 is presently quoted at 1.4856.

Against the yen, the pound added more than 1.2% to reach as high as 135.23 around 3:40 am ET from yesterday's 3-day low of 133.56. GBP/JPY pair, which closed yesterday's deal at 134.95, is presently quoted at 134.74.

The pound climbed to a session's high of 1.6532 against the Swiss franc by 4:05 am ET and the next likely target for the pair is seen around the 1.6650 level in near-term. GBP/CHF pair that was worth 1.6489 at Thursday's close is currently quoted at 1.6506.

The pound jumped to a 2-day high of 0.8335 against the euro around 3:30 am ET, up from yesterday's new multi-week low of 0.8384. On the upside, the UK currency may find target around the 0.8210 level. EUR/GBP rally  that ended yesterday's deals at 0.8359 is presently quoted at 0.8334.