FX.co ★ The GBP/JPY candlestick analysis for 11/10/2010

As it was expected, the GBP/JPY currency pair declined to the mark of 130.00 and rolled back later.
Earlier on a 4-hour chart, the GBP/JPY had formed the combination of candlesticks Bearish Engulfing, thus indicating the downward movement. This candlestick formed after the currency pair could not breach the mark of 135.00, which means that the bulls did not fixate here and the bears started to increase their influence further. The breakthrough of Fibonacci correctional level of 23.6 confirms this viewpoint. Moreover, the GBP/JPY had formed one more bearish combination Falling Three Methods. If the downtrend continues, then the decline to support level of 128.00 should be expected.
However, it is worth to mention that if the resistance level of 132.45 is broken through, then short positions should be closed, as it will lead to the rise to 135.00.