A breakthrough above 1.6240-1.6300 took place at the end of November. 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.
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 breakdown of 1.6460, the GBP/USD pair showed indecision at 1.6340 expressing an inverted Head and Shoulders bullish pattern.This initiated a corrective bullish movement towards 1.6460-1.6500 for further retesting.
In previous article we expected the price zone of 1.6460-1.6480 (Supply Zone) to be defended by the bears allowing enough bearish momentum to push towards 1.6280-1.6230 (prominent DEMAND zone).
Although the bulls have pushed further above 1.6480, they failed to achieve 4H closure above 1.6500 (Our Stop Loss).В
Our suggested SELL entry taken around 1.6460-1.6480 is now running in profits heading towards its final targets at 1.6290, then probably to 1.6250. However, some profits should be taken at the current levels to avoid any possible reversals.
4H stabilization below 1.6340 (Intraday Key-level) is mandatory to maintain enough bearish momentum to push towards 1.6250.
