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GBPUSD enjoyed some USD weakness to push higher, breaking above the previous peak seen in early January at 1.6603 and marked a new high of 1.6615.

At these levels, cable is at the highest level since August 2011. And, it is only a few pips away from breaking that high of August 2011.

Daily chart of GBPUSD showing the levels:

GBPUSD at new highs January 23 2014 technical daily chart for currency traders

There were no pound related news release. The move is due to the weakness of the dollar. Optimism coming from Europe after better than expected PMIs helped the pound gain ground, as a secondary effect.

If it makes the move above 1.6618, GBPUSD will trade at levels last seen in May 2011, a 32 month high. The next level looming above is 1.6750, which was the high seen in May 2011.

Above this, 1.6870 was the peak back in November 2009 and could cap the pair.  Even higher, the post financial crisis high of 1.7042 is the ultimate level.

On the downside, 1.6550 can provide support, followed by 1.6460. For more levels, events and analysis, see the Pound Dollar forecast.