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

This week the EUR/GBP currency pair is rolling back after it broken through the support level of 0.8535. The viewpoint is bearish, as earlier the EUR/GBP formed the combination of candlesticks Bearish Engulfing on the downtrend. As it was mentioned before, the breakout of the support level of 0.8535 will confirm this point of view. In this case the decline to 0.7750 should be expected.
In favor of the downside movement comes the fact that this combination of candlesticks emerged near the upper boundary of the downtrend, where the bulls did not manage to fixate and the bears started to increase their influence and a rebound took place.
The short positions should be closed in case the Fibonacci correction level 50.0 is broken out, since it will denote that the downtrend is broken through and the pair has a target at 0.98.