FX.co ★ Candlestick analysis of the EUR/GBP for 28/09/2010

At a daily chart the EUR/GBP currency pair has formed a bearish combination of Dark Cloud Cover candlesticks. Nevertheless, it is recommended to open short term positions with Stop orders above 0.8580.

Earlier at a week chart the EUR/GBP had shaped the Hammer candlestick that comes as a bullish signal. In favor of the upward movement gets the fact that this candlestick was formed near the support level of 0.8070, where the "bears" did not manage to solidify, and the bulls had started increasing their impact, so a huge rollback took place.
This candlestick shows that the currency pair was moving down after a failed effort of breaking through the resistance level at 0.9411. However, having come closer to 0.8067, it made a turnout.
The fact that the EUR/GBP had successfully broken through the Fibonacci correction level 23.6 means that this opinion is correct one. An uprush of 0.8605 will target the EUR/GBP to the resistance at 0.9160, where the Fibonacci correction level 61.8 is also located.
On the other hand, long positions should be closed at overcoming the support mark at 0.8070, as it will clear the way to 0.7693 (minimum of October 2008).