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.