EUR/GBP candlestick analysis for 21/05/2010

At 1-hour chart of EUR/GBP there was formed an “Evening Star” combination which gives a signal of the downward movement. In addition, this candlestick formed near the resistance level 0.8780-0.8790 where also stood Fibonacci correction level 50.0. This candlestick combination shows that previously the price was escalating during several days after a failed effort to break through the support level 0.8490, however, coming closer to 0.8775 it made a roll-out. It means that in its turn the “bears” woke up at this mark not giving the bulls a chance to solidify. 
It is expected that the currency pair will carry out a downward movement to 0.8650 which is the nearest support level with further target at 0.8600. If this support level is broken through then we should wait for lowering to 0.8494. On the other hand, if the currency pair breaks through a resistance level at 0.8790, then we short positions should be closed as it will target EUR/GBP pair to 0.8870 where Fibonacci correction level 61.8 is fixed.
In favor of the downward movement comes “Bearish Engulfing” candlesticks combination at 4-hour chart.