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.
Then on October 23, the GBP/USD pair broke initially the 1.6200 handle hitting the area 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.
Failure to break down the 1.5900 level was observed last week. Instead, bullish rejection led to another bullish swing again toward 1.6200 (127% Fibo Expansion) which was bypassed so far.
As depicted on the chart, the current level around 1.6300 corresponds to the multiple previous tops that were established in 2012. Knowing that 2012's high was around 1.6350, the bulls are trying to record new highs before the end of 2013.
The current movement remains targeting 1.6350 as long as the bulls are defending the newly established demand zone around 1.6200-1.6250. Bypassing 2012's high around 1.6350 will probably initate a strong bullish swing toward 1.6460 initially.
The current bullish impulse was initiated last Thursday as the bulls were applying bullish pressure based on their hopes regarding the results of the meeting of the Federal Open Market and the U.S. retail sales which were announced later on the day.
Price zone 1.6325-1.6350 remains a significant supply "resistance" for a possible bearish entry with SL as daily closure above 1.6350.
