FX.co ★ The wave analysis of EUR/GBP for 02/07/2010

The EUR/GBP currency pair rolls back after it didn't manage to break through the resistance level at 0.8255, which is located near Fibonacci correction level at 61.8.
Earlier at the 4-hour chart of EUR/GBP there was formed a “Hammer” candle signaling about the upward movement.
This candle shows that the currency pair was decreasing during several days after it failed to overcome the resistance level at 0.8385. However, coming closer to 0.8067, it makes a turnout. It means that "bulls" woke up at this rate not giving the "bears" a chance to solidify here.
A break through of Fibonacci correction level 23.6 means that this point of view is the right one. In addition, the currency pair overcame the resistance at 0.8180, now the uptrend should be expected to the resistance level at 0.8325.
Further, on the upward movement a bull combination was formed out of Rising Three Methods candles, which emphasized the domination of bulls on the market.
On the other hand, long positions should be closed amid the support level break through at 0.8166, as it will open the way to 0.8067.