FX.co ★ GBP/JPY candlestick analysis for 06/10/2010

The GBP/JPY pair rolls back after it broke through the support level of 131.71. Nevertheless, the viewpoint on the currency pair remains bearish as the GBP/JPY is traded in downtrend.
Earlier on a 4-hour chart of the GBP/JPY, the combination of candlesticks Bearish Engulfing has formed, thus signaling about decline. This candlestick formed after the currency pair could not breach the mark of 135.00, thus denoting that bulls did not fixate here and bears started to increase their influence. The breakthrough of Fibonacci correctional level of 23.6 means that this viewpoint is correct. Besides, the GBP/JPY has formed another bearish combination of candlesticks Falling Three Methods. The breach of the support level of 131.71 will set a target to 130.00-130.10 for the currency pair. However, if the resistance level of 133.75 is broken through, then short positions should be closed, as it will lead to increase to 135.00.