FX.co ★ GBP/JPY candlestick analysis for June 10, 2011

In a 4-hour graph the GBP/JPY currency pair is stuck near 130.60-130.80 after a decline to the support level 130.26. Nevertheless, the viewpoint at the pair is still bearish as the downtrend remains.
Earlier in a 4-hour graph the GBP/JPY formed a Shooting Star candlestick, indicating downside movement which was later confirmed.
This candlestick combination was formed after the pair failed to break the resistance level at 135.17, which means that the bulls were not able to solidify here and the bears began to increase their influence.
Break of the Fibonacci correction level 23.6 and the upside channel proves this point of view. Successful testing of the support level 131.23 targeted the GBP/JPY to 130.26.
However, it should be mentioned that if the resistance level 132.84 is broken, short positions should be closed as it would lead to growth to 135.17.