FX.co ★ EUR/GBP Candlestick Analysis for August 31, 2010

On a 4-hour chart EUR/GBP is demonstrating flat. However, the attitude to the currency pair remains bearish.
Breaking through the mark 0.8215 means, that EUR/GBP has targeted to 0.8067.
As it was mentioned before, on a 4-hour chart the combination of candlesticks “Bearish Engulfing” has developed, which shows that the pair has been demonstrating the uprising movement over several days after an unsuccessful attempt of breaking through the support level of 0.8067. Though, having approached 0.8531, it has reversed. Which in its turn denotes that the bears have activated at that point without letting the bulls fixate.
Moreover, the EUR/GBP pair has broken through the support level of 0.8423 and Fibonacci correctional level of 23.6, which confirms this viewpoint.
It should be underlined that stop orders can be placed slightly above 0.8240, as passing this level will denote the falling trend to be punctured.