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

This week the EUR/USD is showing the downside movement after a slight pullback. However, at present the movement is limited by the support level of 0.8430-0.8450.
The outlook is still bearish, as earlier the EUR/GBP has formed the combination of candlesticks Bearish Engulfing on the downtrend.
Moreover, the breakout of support level of 0.8535 means that this point of view is correct. Now the decline to 0.7750 should be expected.
The downwards motion is supported by the fact that this combination of candlesticks emerged near the upper limit of the downtrend, where the bulls did not manage to solidify 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 broken through, since it will denote that the downtrend is breached and the currency pair has targeted to 0.98.