A consolidation between 1.6200-1.5920 was established last month. However, the lack of bearish momentum enhanced by the weakness of USD allowed the bulls to step above 1.6200 on November 27.
Failure to break down the support level of 1.5925 failing to complete the projected targets of range breakout allowed the bulls to record a new high for 2013 at 1.6576.
The GBP/USD pair managed to bypass resistance zone 1.6460-1.6520 for few days until bearish momentum was expressed to push lower again.
On January 2, the market expressed bearish engulfing daily candlestick off 1.6585 which initiated a corrective bearish movement probably targeting 1.6250.
The short-term bullish scenario is being invalidated since 1.6460 wasn't defended by the bulls.
Price level 1.6460 remains the nearest resistance level which seems to be targeted by the current bullish movement after recording a temporary low at 1.6336.
The mid-term view remains bearish towards 1.6250 as long as the bulls are failing to push above 1.6460-1.6500.
