The previous bullish swing targeted 127% Fibonacci Expansion level when the bulls stepped above 1.6035 recording a daily high at 1.6262, which is 70 pips higher than 127.2% Fibonacci Expansion level.
On October 23, the GBP/USD pair broke initially the 1.6200 handle touching the area as of 1.6250. However, most of the bullish gains were lost when the pair established a double top reversal pattern around 1.6200-1.6250. That is why, a valid sell entry was suggested at 1.6200 which went in our direction towards the neck-line around 1.5900.
Failure to break down the 1.5900 level was observed last week. Instead, bullish rejection led to another bullish swing towards 1.6040-1.6060 again which was bypassed so far.
The current movement as long as fixating above Demand Zone around 1.6000-1.6040, it is targeting 1.5720, especially after the bullish engulfing candlesticks being formed which stopped our SELL position.
The performance of the USD dollar during today's consolidation has been variable; as the market bulls are applying bullish pressure based on their hopes regarding the results of the meeting of the Federal Open Market and the release of U.S. data including retail sales which are going to be released later today.
As long as the bulls remain defending 1.6040-1.6000 zone as a support for them, Price Zone 1.6200-1.6230 remains a significant SUPPLY zone to be watched for a possible bearish retracement.
