FX.co ★ The candlestick analysis of the GBP/CHF for 09/11/2010

At 4-hour graph the GBP/CHF currency pair is showing the sideways movement after a rebound from the Fibonacci correction level 61.8.
The GBP/CHF had formed the combination of Bearish Engulfing candlesticks that indicates the downside motion, confirmed further.
The breakout of 1.5627 and Fibonacci correction level 38.2 means that this viewpoint is correct.
The fact that the currency pair has broken through the support level of 1.5541 denotes that the GBP/CHF is targeted to 1.5378.
This combination of candlesticks shows that the currency pair was demonstrating the uprising movement during a couple of days after it failed to breach the support level of 1.51. However, having come closer to 1.5964 the pair reversed. This means that the bears increased their influence here and the bulls did not fixate.
The stop orders should be set slightly above 1.5825, as the breakout of this mark will target the GBP/CHF to 1.5964.