FX.co ★ The candlestick analysis of EUR/GBP for 17/06/02010

Now, opened earlier short positions should be kept. On a 4-hour chart of EUR/GBP, earlier “Dragonfly Doji” candle has shaped and it signals about ascendant motion. Also, this candle formed around the low from November 2008.
This combination of candles shows that before the currency pair has been falling during a few days after failed try to break out the resistance level of 0.8775. However, having approached 0.8200, it reversed. That means that the bulls became active at this mark and did not let the bears to fixate here.
For the moment, EUR/USD is moving upwards again to 0.8370-0.8380. If the currency pair breaks these levels, a rising motion should be expected to the resistance level of 0.8445.
On the other hand, long positions should be closed after the breach of the support level of 0.8200, as it will lead to the achievement of new yearly lows.