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

On October 23, the GBP/USD pair broke initially the 1.6200 level hitting the area of 1.6250. However, most of the bullish gains were lost when the pair established a Double Top reversal pattern around 1.6200-1.6250.

Failure to break down the 1.5900 level was observed two weeks ago. Instead, a bullish rejection led to another bullish swing again toward 1.6200 (127% Fibo Expansion) which was bypassed so far.

As depicted on the chart, price levels around 1.6300 correspond to the multiple previous tops that were established in 2012. Knowing that the high of 2012 year was around 1.6350, the bulls are trying to record new highs before the end of 2013.

The current movement was targeting 1.6350 after the bulls succeeded in defending the newly established demand zone around 1.6200-1.6250. Bypassing the 2012's high around 1.6350, they initated a strong bullish swing toward 1.6450 where a Shooting Star daily candlestick was expressed yesterday.

The current bullish impulse was initiated last Thursday as the bulls were applying the bullish pressure based on their hopes regarding the results of the meeting of the Federal Open Market and the U.S. retail sales which were announced later on the day in their favour.

Price area of 1.6440-1.6470 remains a significant supply "resistance" for a possible bearish entry with SL as daily closure above 1.6500.