Will the GBP/USD break or bounce from its historic high at the 1.7040 level?

The Pound continues to strengthen versus the Dollar after the press conference by the Federal Reserve of the United States and reaches its high from august, 2009 around the 1.7040 level, just as we see it on the monthly chart below of the GBP/USD.

Additionally to what the FED said yesterday, the Bank of England has made some comments about a possible interest rate hike in the United Kingdom. If this happens, then the BOE would be the second major central bank to raise its interest rates after the Reserve Bank of New Zealand. That is why we are seeing the GBP/USD pair reach this peak, but we cannot be too sure if it will break it to the upside.

For now, it is possible to see a bounce to the downside from this zone, due to the fact that the pair has been over-extended to the upside and investors may take some profits off the table. However, if the greenback keeps weakening and the BOE raises its interest rates, then we could see a breakout of this level to the upside.