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 breakdown support zone located around 1.5925. That is why bullish rejection was manifested around 1.5860 failing to complete the projected targets of the double-top pattern. Instead, the bulls managed to exceed the previous high of 2013 around 1.6340 recording a new high for 2013 at 1.6463. A sell entry was suggested at retesting of price levels around 1.6440. Our targets were hit around 1.6320 and 1.6250. As it was mentioned yesterday, failure of the bears to break down 1.6250 allowed another bullish impulse towards 1.6400 to be initiated by the bulls supported by the positive fundamental news from the UK. Price levels around 1.6400 should be watched as it constitutes a confluence of resistance for the GBP/USD pair. A bearish position can be taken there to make use of another possible bearish impulse targeting 1.6300 then 1.6240 possibly. Daily closure above 1.6430 invalidates the short-term bearish view opening the way for another strong bullish impulse.
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