The candlestick analysis of the EUR/GBP for 09/11/2010

The EUR/GBP has successfully broken through the support level of 0.8626 and presently is declining.
Earlier at daily graph the EUR/GBP formed the combination of candlesticks Bearish Engulfing, which indicates the downside motion.

This combination of candlesticks shows that the currency pair was demonstrating the upwards tendency during several weeks after it failed to break out the support level of 0.8067. Nevertheless, coming closer to 0.8950 it reversed. This means that the bears strengthened here and the bulls did not solidify here.
The breakout of the Fibonacci correction level 38.2 and support level of 0.8626 denotes that this point of view is correct. The downside motion with the target at support level of 0.8462 where the Fibonacci correction level 61.8 is placed should be expected.
It is recommended to set the stop orders slightly above 0.8821, as the breakthrough of this mark ill target the EUR/GBP at 0.8950.

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