FX.co ★ Candlestick analysis of the GBP/USD for 26/11/2010

On a 4-hour graph the GBP/USD currency pair is continuing to decline. The viewpoint on the currency pair is bearish, as earlier the combination of candlesticks Bearish Engulfing formed; this combination indicates the decrease, confirmed further.
This combination of candlesticks appeared after the currency pair could not break through the resistance level near 1.6085-1.6096, which means that the bulls did not manage to solidify here. Further the bears started to increase their presence.
The breakout of 1.5841 confirms this point of view. After a pullback the pair resumed its decline with the target to 1.5651.
In case the resistance level of 1.6096 is breached then short positions should be closed, as it will lead to advance to 1.6175.