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

At the end of the week the EUR/GBP pair is traded down. As it was mentioned before, the successful breakout of support level near 0.8430-0.8450 targeted the currency pair to 0.8143.
The viewpoint remains bearish, as earlier the EUR/GBP formed the combination of candlesticks Bearish Engulfing on the downtrend.
Moreover, the breakout of the support level of 0.8535 means that this point of view is correct.
Now, the decline to 0.7750-0.7750 should be expected.
The downside movement is supported by the fact that this combination of candlesticks developed near the upper limit of downtrend, where the bulls did not manage to solidify and the bears started increasing their presence, and a rebound took place.
It is recommended to close short positions if the Fibonacci correction level 50.0 is broken through, since this will indicate that the downtrend is breached and the pair is moving to 0.98.