FX.co ★ The candlestick analysis of EUR/GBP for 22/06/2010

The EUR/GBP currency pair made a pullback after failed test of the resistance level of 0.8381. If the pair breaks out this level, an upward motion to the resistance level of 0.8445 should be expected.
On the other hand, long positions should be closed after the breach of the support level of 0.8200, as it will lead to the reach of new yearly lows.
Earlier, on a 4-hour chart, EUR/GBP has developed “Dragonfly Doji” candle, which signals about uprising motion, which has been confirmed thereafter. Moreover, this candle formed around the low of November 2008.
This candle shows that before, the pair has been decreasing during a few days after a failed try to break through the resistance level of 0.8775. However, having approached 0.8200 it reversed. It means that the bulls have become active at the mark, having not allowed the bears to fixate here.