Where his head will go will depend entirely on his conformation. Some horses are designed to carry it higher and some are designed to carry it lower. However, when you pick up on the reins, his head should not go up, it should come down and in. If a horse is already in the habit of throwing his head or "stargazing" when the reins are picked up, it takes a lot of time and very consistent riding to re-train him to be supple and soft. Some horses never fully get over it if they've done it for a very long time.
Re-training something like that can get complicated and frustrating at times. Have you looked around your area to see if there are some good western instructors (heck, even an english instructor would be better than nothing) that can help you learn to become a more effective rider?