Candlestick Analysis of the GBP/CHF for 08/11/2010

At 4-hour graph the GBP/CHF makes a rollback from Fibonacci correction level 61.8.
Earlier the GBP/CHF formed a combination of Bearish Engulfing candlesticks which gives a signal to the downward trend and that confirmed afterwards.

A  breakthrough of 1.5627 and Fibonacci correction level 38.2 means that this point of view is correct.
The fact that the currency pair has broken through the support level at 1.5541 means that the GBP/CHF is targeted to 1.5378. 
This combination of candlesticks shows that the currency pair demonstrated an upward motion during several days after a failure to break through the support level at 1.51. However, coming closer to 1.5964, it made a turnout. In its turn it means that “bears” activated at this mark not giving the bulls a chance to solidify. Worth pointing out that stop-orders should be placed slightly higher than 1.5825, as this rate capture will target the GBP/CHF to 1.5964.

More analysis at