Breakthrough above 1.6240-1.6300 took place in December when another consolidation range was established between 1.6240-1.6450. The last bullish impulse was initiated towards 1.6570-1.6600 in an attempt of bulls to record new highs in 2013.В
The last bearish rejection took place on Thursday (January, 2) when bearish pressure was applied near the level of 1.6600 (the upper limit of the expanding wedge) resulting in a double-top pattern with multiple bearish engulfing candlesticks in the right limb of the pattern.
After the bears managed to breakdown 1.6460, the GBP/USD pair showed indecision at 1.6340-1.6440. The bulls established a short-term inverted head and shoulders pattern which achieved its projection target at 1.6460 as mentioned yesterday.
In the short term, 1.6460-1.6480 will probably gather enough bearish momentum to push lower towards 1.6280-1.6230 (prominent DEMAND zone).
SELLING the GBP/USD pair at the current levels around 1.6460 will probably be a valid option with tight Stop Loss as 4H closure above 1.6500.
Take care that important fundamental data regarding "U.S. Weekly Unemployment Claims" will be released after one hour. This may influence our currency pair strongly, so stick to our SL mentioned above.
Watching of price action at DEMAND zone of 1.6280-1.6230 should be considered at retesting.
