On a 4-hour chart of EUR/GBP the “Long Shadows” candlestick is signaling the downfalling movement. Besides, this candlestick has formed near the resistance level of 0.8595, where Fibonacci correctional level of 23.6 is also placed.
The “Long Shadows” candlestick demonstrates that earlier the price was growing within several hours, but after reaching the mark 0.8595 it recoiled, having made a few unsuccessful attempts of breaking through. This means that the bears have activated on that very level not letting the bulls to strengthen here.
The EUR/GBP pair is expected to decline to 0.8500, where the nearest support level is. If the price gets through the level the pair will be able to reach 0.8445.
On the contrary, if the pair breaks through the resistance level of 0.8595, it will denote that this viewpoint is false.
Though, on a day-chart the “Morning Star” candlestick is developed, signaling growth. This combination of candlesticks has formed around an important support level of 0.8435 and shows that the bulls dominated the bears. A rebound from this level gave a perfect chance to open long.
At the moment we should await the growth of the currency pair to 0.8810, where the nearest resistance level is located, moreover, not far from this mark Fibonacci correctional level 50.0 is placed.