FX.co ★ The candlestick analysis of the EUR/GBP (long-term outlook)

By the end of the week the EUR/GBP closed with a strong decline, having successfully broken through the support level of 0.8535. The viewpoint on the currency pair is still bearish, since the EUR/GBP has formed the combination of candlesticks Bearish Engulfing on the downside trend.
As it was mentioned before, the breakout of the support level of 0.8535 will mean that this point of view is correct. In this case the decline to 0.7750 should be expected.
In favor of the downtrend comes the fact that this combination of candlesticks appeared near the upper limit of the downtrend, where the bulls did not manage to fixate and the bears started to increase their influence and a rebound took place.
It is recommended to close short positions in case the Fibonacci correction level 50.0 is breached, as it will mean that the downside trend is broken out and the currency pair is targeted at 0.98.