FX.co ★ EUR/GBP Candlestick Analysis for August 24,2010

On a four-hour chart the EUR/GBP currency pair is consolidating. Though a short-time attitude to the pair remains bearish. Breaking through the mark of 0.8215 denotes that EUR/GBP has aimed at 0.8067.
As it was stated before, on a 4-hour chart the candlestick combination “Bearish Engulfing” has formed, which shows that the currecny pair has been demonstrating an uprisign movement for several days after an unsuccessful attempt to break though the support level 0.8067. However, having approached 0.8531, it reversed. This denotes that the bears have activated at this mark, not letting the bulls fiaxt here.
Moreover, EUR/GBP has interrupted the support level 0.8423 and Fibonacci correctonal level of 23.6, which confirms this viewpoint.
We should underline that stop orders are to be placed slightly above 0.8285, as the puncture of this level will mean the breaking of the decreasing trend.