On a 4-hour chart the EUR/GBP pair has formed a “Gravestone Doji” candlestick earlier, which signals a downfalling trend. Moreover, this candlestick has developed near the resistance level of 0.8620-0.8625, where Fibonacci correctional level 50.0 is placed.
“Gravestone Doji” shows that earlier the price has been growing for several hours but having reached the mark 0.8620 it recoiled after a few attempts of breaking through. This means that the bears activated at this level without letting the bulls to strengthen here.
However, after the pair declined to the area of 0.8500, where the closest support level is, it rebounded. If the price gets through the mark, the currency pair can reach 0.8445.
On the other hand, if the pair gets through the resistance level of 0.8625, short positions should be closed.
On a day-chart “Morning Star” has formed, signaling the growth. This combination of candlesticks has developed near the important support level of 0.8435 and demonstrates that the bulls pressurized the bears again. A rebound from this level has given a perfect opportunity to open long. Now it is good to wait for the increase of the currency pair to 0.8850, where the closest resistance level is positioned, moreover, Fibonacci correctional level of 61.8 is not distant from this mark.
