FX.co ★ EUR/GBP candlestick analysis for January 21, 2011

On a 4-hour graph the EUR/GBP currency pair is rolling back after it could not break the support level near 0.8337. As mentioned before, stop-loss signals should be placed slightly above 0.8500 as the break of this level will target the pair to 0.8650.
Earlier on a 4-hour graph the EUR/GBP pair has formed the Shooting star candlestick that indicates further downside movement. This candlestick shows that earlier the EUR/GBP rebounded sharply after an unsuccessful attempt to break the support level at 0.8283. However, it reversed near 8500. In its turn it means that the bears were active on this level and the bulls could not solidify here.
The breakout of the 0.8389 support level proves this viewpoint. Now downside movement targeted to the support level 0.8283 should be expected.