Like a play from a playbook the GBP/USD is exhibiting a classic bullish activity. Pop on bullish news (US fiscal cliff averted), blow through resistance, sell off, find support, and bounce from there. On 12/27 the Pound put in a higher low but needed some momentum to get through $1.62 resistance. The news flow was sufficient to get the momentum going and the price action says higher prices are ahead.
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