FX.co ★ Intraday technical levels and trading recommendations for GBP/USD for April 16, 2014

Around the price zone of 1.6780-1.6800, a Double Top pattern scenario was previously established during February and March.

Daily fixation below 1.6600 (reversal pattern neckline) exposed price level 1.6530 (50% Fibonacci) then enabled the pair to hit the full projection target at 1.6464 (61.8% Fibonacci).

The recent lows at 1.6465 as well as 1.6555 (corresponding to the depicted uptrend line) prevented further bearish decline and provided enough buying pressure to keep fixing above 1.6630-1.6666 (corresponding to a prominent top established on January 24).

As long as the ascending bottom established at the uptrend around 1.6555 remains intact, the bulls will be consolidating around 1.6780-1.6800.

The nearest demand zone to meet the pair is located at 1.6660-1.6675. It's the most recent established top on the current bullish swing.

As mentioned Yesterday, any bearish pull-back towards 1.6660 -1.6675 should be considered for buying. Yesterday this BUY position was triggered and running in profits now.

As long as 1.6555 (most recent bottom) remains defended by the bulls our long position remains valid.

The 4H chart reveals more significance of the demand zone around the recently broken top mentioned above in the daily chart.

This demand zone corresponds to 50% and 61.8% Fibonacci levels which is a critical demand zone for the ongoing bullish swing.

The price zone of 1.6645-1.6680 offered a valid BUY entry on the recent bearish pull-back as expected.

Stop loss should be located below 1.6625.