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

The EUR/GBP is continuing to trade down. The successful breakout of support level near 0.8430-0.8450 targeted the currency pair to 0.8143.
The viewpoint is bearish, as earlier the EUR/GBP has formed the combination of candlesticks Bearish Engulfing on the downtrend.
Besides, the breakthrough of the support level of 0.8535 confirms this point of view. Now the decline to 0.7750-0.7700 should be expected.
The downside movement is supported by the fact that this combination of candlesticks formed near upper limit of 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 broken out, since it will denote that the downtrend is broken through and the pair targeted to 0.98.