Last week, the EUR/GBP currency pair rebounded to the resistance level of 0.8605. A breakthrough of this mark denotes that EUR/GBP is targeted to 0.9160, where Fibonacci correctional level of 61.8 is.
Earlier on a weekly chart, EUR/GBP has formed Hammer candlestick thus indicating the bullish signal. This viewpoint is confirmed by the fact that this candlestick formed near the support level of 0.8070, where the bulls increased their influence and bears did not strengthen, and rebound took place. The candlestick shows the decline of the currency pair after unsuccessful attempt to break through the resistance level of 0.9411. However, having approached to the level of 0.8067, it has reversed.
Since EUR/USD has broke out Fibonacci correctional level of 23.6 denotes that this viewpoint is correct.
On the other hand, long positions should be closed if the support level of 0.8070 is broken through, as it will cause a drop to 0.7693.
