GBP/USD had been moving within a wide-ranged price zone extending between 1.5900 and 1.6250 until November 27 when a bullish breakout took place.
Since then, the bulls have been defending 1.6250 as a prominent support. Another successful bullish retesting took place in mid-December that pushed the pair again to the upside.
Based on this bullish breakout, the GBP/USD pair had a projection target around 1.6630 which acts as a prominent resistance for the pair.
As suggested, the bearish reversal was initially expressed at retesting of 1.6660 on January 24.
Bullish momentum manifested itself through the current week's consolidations until bearish rejection was expressed on retesting of 1.6620 on Tuesday. The pair declined about 160 pips reaching a prominent support level located at 1.6450.
Bullish reversal off 1.6450 will probably push the pair towards 1.6490-1.6500 before further bearish movement takes place. Four-hour stabilization below price level of 1.6500 is mandatory for further decline to take place.
4H closure above 1.6500 probably indicates another bullish impulse towards 1.6600 then probably 1.6666.
The material has been provided by InstaForex Company - www.instaforex.com
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