FX.co ★ EUR/GBP candlestick analysis for August 19, 2011

0.8890-0.8642.
Earlier in a 4-hour graph the EUR/GBP formed a Dark Cloud Cover candlestick combination indicating downside movement confirmed further.
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 denotes that this point of view is correct. This caused a decline to the support level 0.8860 where the Fibonacci correction level 61.8 is located as well. Its break caused downside movement to 0.8720. Fixation below 0.8720 enabled the pair to reach 0.8600.
As mentioned before, in case the pair closes above the resistance level 0.8891 short positions should be closed as this break will target the pair to 0.9000.