The candlestick analysis of the EUR/GBP for 10/11/2010

The EUR/USD is consolidating after the successful breakout of the support level 0.8626. Nevertheless, the viewpoint is still bearish.
Earlier at a daily graph the EUR/GBP has formed the combination of candlesticks Bearish Engulfing, which indicates the downside tendency.

This combination of candlesticks shows that the currency pair was demonstrating the uprising movement during a couple of weeks after it failed to break through the support level of 0.8067. However, having come closer to 0.8950 the pair reversed. This denotes that the bears activated here and the culls did not fixate.
The breakout of the Fibonacci correction level 38.2 and support level of 0.8626 confirms this point of view. Now, the downwards motion with the target at support level of 0.8462, where the Fibonacci correction level 61.8 is placed, should be expected.
It worth to point to out that stop orders should be set slightly above 0.8821, since the breakthrough of this mark will target the EUR/GBP at 0.8950.

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