Strong bullish sentiment was found at the support area around 1.4830, which pushed the pair to 1.5700, the level where two prominent tops were established, until the bulls initiated another bullish impulse towards 1.6200 where other two prominent tops were established.
It is worthy of note that the market initially expressed a bearish rejection around 1.6200, which resulted in an Inverted Hammer weekly candlestick, which established a consolidation range down to 1.5920. However, the lack of bearish momentum enhanced by the weakness of USD allowed the bulls to step above 1.6200.
The pair failed to break down the support zone located around 1.5925. That is why bullish rejection was manifested around 1.5860 (lower limit of the depicted channel) failing to complete the projected targets of the double top pattern. Instead, the bulls managed to record a new high for 2013 at 1.6576.
As it was mentioned last week, failure of the bears to break down 1.6250 allowed another bullish impulse towards 1.6400 then 1.6500 to be initiated by the bulls supported by the positive fundamental news from the UK.
Strong bullish momentum pushed the GBP/USD pair to bypass price zone 1.6460-1.6520, which constituted a prominent technical resistance for the pair.
On the last day of 2013, the pair expressed daily closure at 1.6560 which invalidates the short-term bearish view opening the way for another strong bullish impulse towards 1.6610 initially.
Price level 1.6460 remains the nearest support level for the pair in the short-term prospective. The bullish scenario remains closer to happen as long as 1.6460 remains defended by the bulls.
