During early European session Wednesday, the British pound recovered from its Asian session's loss against its US, European and Switzerland rivals as the Bank of England's Chief Economist Spencer Dale reported the UK economy is stabilizing and has turned a corner on the road to recovery. Meantime, the pound also extended its gains against the Japanese yen, surging to a 5-day high against the euro and 6-day highs against the dollar, franc and the yen. BoE chief economist, Spencer Dale said global industrial output broadly stabilized in a little over a year, one of the key factors contributing to the quicker stabilization of activity has been the speed and decisiveness with which policy throughout the world responded to the twin threats of a failing banking system and falling confidence, Dale claims. He also added that he is concerned that further substantial injections of liquidity might result in unwarranted increases in some asset prices. The pound advanced after touching lows of 1.6563 against the Swiss franc and 1.6553 against the dollar at 2:25 am ET Wednesday. As of now, the pound is trading at 6-day highs of 1.6677 against the dollar and 1.6653 against the franc, compared to Tuesday's close of 1.6619 and 1.6613, respectively. If the pound gains further, it may target 1.682 against the franc and 1.675 against the dollar. The pound that fell to 0.9108 against the euro at 2:25 am ET Wednesday bounced back thereafter. Currently, the pound is trading at a 5-day high of 0.9057 per euro with 0.898 seen as the next target level. At yesterday's close, EUR/GBP rally was quoted at 0.9079. Extending its Asian session's uptrend, the pound soared to a 6-day high of 145.60 against the yen in early European deals on Wednesday. The next upside target level for the pound is seen at 151.2. GBP/JPY pair was worth 144.07 at yesterday's close.

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