FX.co ★ EUR/GBP candlestick analysis for July 5, 2011

Earlier in a 4-hour graph the EUR/GBP formed a Dark Cloud Cover candlestick combination indicating downside movement.
This candlestick combination was demonstrating strong upside movement after a fail to break 0.8720. However, it reversed near 0.9083. It means that the bears activated near 0.9100 and did not allow the bulls to fixate.
Fixation below the Fibonacci correction level 23.6 will denote that this point of view is correct. In this case we should expect downside movement with a target at the support level 0.8860 where the Fibonacci correction level 61.8 is located as well.
It is worth mentioning that stop loss should be placed slightly above the resistance level 0.9083 as its break will target the pair to 0.9150.