Double the Chiro and Massage.
Horses with their head in the air almost always indicated back problems. Are you positive all your tack fits him exactly right? What bit are you using? The fact that he's anticipating your cues makes me think something is seriously hurting him. He's trying to guess what you want before you do it so it doesn't hurt. Maybe nothing is left that's hurting him, but he's anticipating pain because it's happened before. Either way - chiro and massage will let you know.
Also - don't be so worried about where his head is and worry where the rest of him is - is he working from his hind end - or is he just throwing himself helplessly forward? Is he working up into the bit or hauling against it?
My other thought - what type of bit are you using? Many horses with low pallets hate single jointed snaffles, they'll often lean into the bit or pick their head up really high to pull the pressure down onto the bars and tongue, which are less sensitive, rather than get jabbed by the joint of the snaffle in their pallet. You may want to look into a double jointed bit like a french link or lozenge style bit - Not a Dr. Bristol.
Last edited by PunksTank; 02-12-2013 at 11:58 PM.