GBP/USD breaks to 16 month high on fiscal cliff approval

For cable, 2013 begins with a bang: after the US House managed to approve the fiscal cliff deal, GBP/USD made a sharp move higher, also enjoying the low market liquidity. Japanese markets are closed today.

GBP USD at 16 month high after fiscal cliff approval January 2 2012 — GBP USD at 16 month high – Click image to enlarge

It crossed the mighty 1.63 line and reached levels last seen in August 2011. Where next?

Is it a false break due to low liquidity? Or is it the beginning of a sustained rally? GBP/USD is now trading at 1.6330 after already trading at 1.6381. The 1.63 line capped the pair for a very long time, and attempts to cross this line were futile.

The next big levels are 1.6475 and 1.6618. For more details, see the GBP/USD forecast.

Yohay Elam

Yohay Elam: Founder, Writer and Editor I have been into forex trading for over 5 years, and I share the experience that I have and the knowledge that I've accumulated. After taking a short course about forex. Like many forex traders, I've earned a significant share of my knowledge the hard way. Macroeconomics, the impact of news on the ever-moving currency markets and trading psychology have always fascinated me. Before founding Forex Crunch, I've worked as a programmer in various hi-tech companies. I have a B. Sc. in Computer Science from Ben Gurion University. Given this background, forex software has a relatively bigger share in the posts. Yohay's Google Profile

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