US iPhone to be used in the UK

Hi
I have a US iphone which I plan to cancel with AT&T and then hopefully use in the UK with a new O2 sim card.
Would this work? or would I be better off selling my iPhone on ebay first and then purchasing a new phone in the UK?

Note that ATT does have a policy that if you are moving overseas and can not see out your two-year contract, they will cancel it out for you with proof of new residency in another country.
You will need to eBay or Craigslist your iPhone here in the states, then buy a new one with a new contract with O2 in the UK.
Currently, lightly used iPHones are selling for about 350.00 on eBay if they are in excellent shape with all original materials -- less if there are any scratches or damage or missing materials.
You can get a bit more if you have purchased Apple Care - as that is transferable to the future buyer and gives them assurance their battery will be covered for a longer period of time. Apple Care is attached to the serial number of the iPhone, not the owner of the iPhone.
With Apple Care, you can probably get about 370 for the iPhone on eBay.
Your quickest way of selling your iPhone is to list it as a Buy It Now option instead of entertaining bids. In perfect condition at 350.00 it will sell in less than a few hours.

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