On October 23, the GBP/USD pair broke initially the 1.6200 level 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 weeks ago. Instead, a bullish rejection led to another bullish swing again above 1.6200 which was bypassed so far.
As depicted in the chart, price levels around 1.6300 are corresponding to the multiple previous tops that were established in 2012.
Knowing that the high of 2012 year was around 1.6350, the bulls have been trying to record new highs before the end of 2013 and they were successful to hit 1.6464, 1.6557 and recently 1.6567 as new highs for 2013.
The long-term view remains bullish as long as the bulls are defending the newly established demand zone around 1.6250.
Last week, bullish tendency to break through the upper limit of the bearish 4H channel was enhanced after failure to break 1.6300, especially after the positive fundamental data from the UK released last week.
On the depicted chart, we can also see temporary rejection expressed at the upper limit of the "expanding wedge pattern".
This may offer a SELL signal with SL as daily closure above 1.6500 (indicating a bullish breakout).
Our initial targets should be located at 1.6350, 1.6300 and possibly further lower targets.
