The previous bullish swing targeted 127% Fibonacci Expansion level when the bulls stepped above 1.6035 recording a daily high at 1.6262, which is 70 pips higher than 127.2% Fibonacci Expansion level. On October 23, the GBP/USD pair broke initially the 1.6200 handle 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. That is why a valid sell entry was suggested at 1.6200 which went in our direction towards the neckline around 1.5900. Failure to break down the 1.5900 level was observed last week. Instead, bullish rejection led to another bullish swing towards 1.6040-1.6060 again which was bypassed so far. The current movement as long as fixation above the Demand Zone around 1.6000-1.6040 is the targeting 1.5720 where 127.2% Fibonacci Expansion Level is located. The performance of the U.S. dollar during Thursday's consolidation has been variable; as the bulls were applying 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. On Friday, the bulls broke above 1.5720 expressing daily closure at 1.6220. However, the previous daily candlestick was a Hanging Man indicating a possible bearish retracement off the current levels towards 1.6040-1.6000. Price zone 1.6200-1.6230 remains a significant supply for a possible bearish entry with SL located above 1.6250.
