FX.co ★ Candlestick analysis of EUR/GBP for 03/08/2010

On a 4-hour chart, the EUR/GBP currency pair is continuing trading in the descendant channel after it has successfully broken out Fibonacci correctional level of 50.0. It is expected that after a pullback EUR/GBP will slide to 0.8215.
Earlier on a 4-hour chart “Bearish Engulfing” candlestick combination has developed, which indicates that the currency pair has demonstrated a rising motion during several days after a failed try of the breakout of the support level of 0.8067. However, having come close to 0.8531, it reversed. It means that the bears have become active at this mark, having not let the bulls to fixate there.
Moreover, the pair broke through the support level of 0.8423 and Fibonacci correctional level of 23.6, which confirmed the correctness of this point of view.
It should be noted that stop orders are better to place slightly above 0.8396 because the breach of this level will cause growth to 0.8531.