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 – 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.
