FX.co ★ The candlestick analysis of the EUR/GBP

This week, the EUR/GBP is traded up. The fact that the EUR/GBP had breached Fibonacci correctional level 38.2 denoted that the pair would test the resistance level of 0.9160 soon, where Fibonacci correctional level 61.8 is.
Earlier on a weekly graph, the EUR/GBP had formed Hammer candlestick, which is the bullish signal. The uprising movement is supported by the fact that this candlestick formed near the support level of 0.8070, where the bears did not fixate and the bulls started to increase their influence and a rebound happened.
This candlestick shows that the currency pair was declining after the failed attempt to breach the resistance level of 0.9411. However, having come closer to 0.8067 it reversed.
The fact that the EUR/GBP had successfully broke through Fibonacci correctional level 23.6 confirms this viewpoint.
On the other hand, the long positions should be closed if the resistance level of 0.8070 is breached, since it will lead to advance to 0.7693 (October 2008 low).