Candlestick analysis of the EUR/GBP for 24/11/2010

On a daily graph the EUR/GBP is again showing the decrease after a slight pullback. The outlook is still bearish, as the downtrend remains. As it was mentioned before if the level of 0.8451 is broken through then the decrease to support level of 0.82 is expected.

Earlier on a daily chart the EUR/GBP formed the combination of candlesticks Bearish Engulfing that points to the downwards tendency.
This combination of candlesticks shows that the currency pair was moving upside during several weeks after it failed to break out the support level of 0.8067. Nevertheless, the pair reversed having moved to 0.8950. This means that the bears started to increase their influence here and did not allow the bulls to solidify.
The breakthrough of the Fibonacci correction level 38.2 and support level of 0.8626 confirms this viewpoint.
It is recommended to place the stop orders slightly above 0.8821, as the breakout of this area will target the EUR/GBP to 0.8950.

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