FX.co ★ The EUR/GBP Candlestick Analysis for 23/08/2010

On a 4-hour chart the EUR/GBP pair is declining. Breaking through the mark of 0.8215 denotes that EUR/GBP has targeted to 0.8067.
As it was said before, the candlestick combination “Bearish Engulfing”, is formed on a 4-hour chart, showing that the currency pair has been demonstrating an upward movement for several days after an unsuccessful attempt to of breaking through the support level of 0.8067. However, having approached 0.8531, it has reversed. This in its turn denotes that the bears have activated at that mark without giving the bulls to fixate here.
Moreover, the EUR/GBP pair passed the support level of 0.8423 and the Correctional Fibonacci level of 23.6 confirming the viewpoint.
It should be singled out that stop orders are to be placed slightly above 0.8285, as the puncture of this mark will mean that the declining trend is broken through.