FX.co ★ GBP/USD intraday technical levels and trading recommendations for December 3, 2013

Strong bullish sentiment was found at the support zone around 1.4830, which pushed the pair to hit 1.5700, where two prominent tops were established untill 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. That is why a bearish movement was expected last weeks provided that the bears continue defending the weekly high at 1.6200. 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 1.5950-1.6040 . However, bullish rejection was manifested around 1.5860 failing to complete the projected targets of the double-bottom pattern. Instead, the bulls are now pushing above 1.6300 in attempt to exceed the highest level of 2013 around 1.6340. The bulls are successful so far as they recorded a new high at 1.6440.

Yesterday, the GBP/USD pair expressed an Inverted Hammer daily candlestick after testing 1.6440 where the backside of the broken uptrend is located.

A sell entry may be taken at retesting of price levels around 1.6440. SL should be set as daily closure above 1.6470.