Only alter indentation when it is too low

Previously insert newline above would use the current line's
indent level which could be the less than the proper level if the
newline should be further indented based on the increase indent
pattern being used.

spec/editor-spec.coffee

@@ -1424,7 +1424,7 @@ describe "Editor", ->
           editor.undo()
           expect(editor.getCursorBufferPosition()).toEqual [3,4]
 
-      it "indents the new line to the same indent level as the current line when editor.autoIndent is true", ->
+      it "indents the new line to the correct level when editor.autoIndent is true", ->
         atom.config.set('editor.autoIndent', true)
 
         editor.setText('  var test')
@@ -1444,6 +1444,15 @@ describe "Editor", ->
         expect(editor.lineForBufferRow(1)).toBe '  '
         expect(editor.lineForBufferRow(2)).toBe '  var test'
 
+        editor.setText('function() {\n}')
+        editor.setCursorBufferPosition([1,1])
+        editor.insertNewlineAbove()
+
+        expect(editor.getCursorBufferPosition()).toEqual [1,2]
+        expect(editor.lineForBufferRow(0)).toBe 'function() {'
+        expect(editor.lineForBufferRow(1)).toBe '  '
+        expect(editor.lineForBufferRow(2)).toBe '}'
+
     describe ".backspace()", ->
       describe "when there is a single cursor", ->
         changeScreenRangeHandler = null

src/editor.coffee

@@ -630,7 +630,9 @@ class Editor extends Model
       @moveCursorToBeginningOfLine()
       @moveCursorLeft()
       @insertNewline()
-      @setIndentationForBufferRow(bufferRow, indentLevel) if @shouldAutoIndent()
+
+      if @shouldAutoIndent() and @indentationForBufferRow(bufferRow) < indentLevel
+        @setIndentationForBufferRow(bufferRow, indentLevel)
 
       if onFirstLine
         @moveCursorUp()