FX.co ★ The candlestick analysis of the EUR/GBP for 12/11/2010

At a daily chart the EUR/GBP is rolling back from the Fibonacci correction level 61.8. In case this level is broken through the decrease to support level of 0.82 is expectable.
Earlier at a daily graph the EUR/GBP has formed the combination of candlesticks Bearish Engulfing that points to the downwards motion.
This combination of candlesticks indicates that the currency pair was demonstrating the upside movement during several weeks after it failed to break out the support level of 0.8067. Nevertheless, the pair turned over near 0.8950. This means that the bears became active and the bulls did not strengthen here.
The breakout of the Fibonacci correction level 38.2 and support level of 0.8626 indicates that this viewpoint is correct.
It is recommended to set the stop orders above 0.8821, as the breakthrough of this mark will target the EUR/GBP to 0.8950.