Forex: GBP/USD consolidates gains above 1.6300

FXstreet.com (Barcelona) - The sterling is advancing firmly against the greenback on Wednesday, after the US 'fiscal cliff' was averted, hence pushing risk associated assets to fresh highs.

The pound has followed the prevailing risk-on tone, jumping more than one big figure, from levels below 1.6250 to the proximities of 1.6380, although retracing some profits at the moment.

In the data front, the UK manufacturing PMI is due next. Market consensus expects the headline to remain at 49.1 in December.

GBPUSD is now advancing 0.44% at 1.6320 and a breakout of 1.6380 (high Jan.2) would open the door to 1.6455 (high Aug.29 2011) and then 1.6535 (high Aug.24 2011).
On the downside, support levels are located at 1.6242 (hourly low Jan.2) followed by 1.6192 (MA10d) and 1.6162 (MA21d).