FX.co ★ The GBP/CHF candlestick analysis for November 04, 2010

At 4-hour graph the GBP/CHF formed the combination of candlesticks Bearish Engulfing, which points to the downside movement.
A breakthrough of 1.5627 and the Fibonacci correction level 38.2 confirms this point of view. Now, the decline to 1.5541 should be expected with the next target at 1.5127.
This combination of candlesticks indicates that the currency pair was moving upwards during several days, after it failed to break out the support level of 1.51. Nevertheless, the pair reversed after it moved to 1.5964. This means that the bears strengthened at this mark and did not allow bulls to solidify here.
It is recommended to set the stop order slightly above 1.5825, since the breakthrough of this mark will target the GBP/CHF at 1.5964.