FX.co ★ GBP/USD candlestick analysis for April 25, 2011

Earlier in a 4-hour graph the GBP/USD formed a Bearish Engulfing candlestick combination, which indicates a downside movement.
This candlestick combination formed after the pair had failed to break the resistance level near 1.6600, which means that the bulls could not solidify here. Further the bears started to increase their influence.
A break of the Fibonacci correction level 23.6 will prove this viewpoint. In this case downside movement to 1.6164, where Fibonacci correction level 61.8 is also located, should be expected.
It is worth mentioning that stop loss should be placed slightly above the 1.6600 level, since a break of this level will target the pair to 1.6750.