FX.co ★ Candlestick analysis of EUR/GBP (long term outlook)

At the week chart EUR/GBP currency pair formed a Hammer candlestick that is a signal to the upward movement. In favor of the upward movement comes the fact that this candlestick formed near the support level at 0.8070 where the” bears” could not fix and the “bulls” started increasing their influence and a huge rollback took place.
This candlestick shows that the currency pair was moving downwards after a failed effort of breaking through the resistance level at 0.9411. However, coming closer to 0.8067 it made a turnout.
At present, EUR/GBP is testing Fibonacci correctional level 23.6, its break through will mean that this point of view is right and will also lead upwards to the resistance level at 0.8604.
From the other side, long positions should be closed amid overcoming the support level at 0.8070, as it will open the way to 0.7693 (the minimum of October 2008).