FX.co ★ EUR/GBP candlestick analysis for September 2, 2011

In a 4-hour graph the EUR/GBP pair has finally broken out of the trading range 0.8891-0.8642. The viewpoint at the pair became bearish again.
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 0.8500.
Nevertheless, if the pair closes above the 0.8891 level short positions should be closed as it will target it to 0.9000.