A breakthrough above 1.6240-1.6300 took place at the end of November. A wide 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 which achieved its projection target 10 days after reaching 1.6350.
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.
Price zone of 1.6460-1.6480 (Supply Zone) provided a valid SELL entry as suggested on Friday. Estimated bearish targets are located at 1.6280-1.6230 (prominent DEMAND zone).
Intraday Demand Zone located at 1.6340В provided quite significant support for the pair preventing further decline towards 1.6280. This was supported by the positive fundamental data from the UK. This applied positive influence on the GBP/USD allowing the bulls to react strongly at 1.6340.В
4H stabilization below 1.6340 (Intraday Key-level) is mandatory to maintain enough bearish momentum to push towards 1.6250.В Otherwise, the bulls will be shooting at 1.6460 again.
