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FX.co ★ The GBP/JPY candlestick analysis for October 8, 2010

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Forex Analysis:::2010-10-08T07:48:13

The GBP/JPY candlestick analysis for October 8, 2010

The GBP/JPY currency pair rolls back after it could not break the Fibonacci correctional level 61.8. Nevertheless, it is expected that soon the currency pair will test the support level near 130.00-130.10.
Earlier on a 4-hour chart, the GBP/JPY has formed the combination of candlesticks Bearish Engulfing, thus denoting the downtrend. This candlestick formed after the currency pair could not breach the mark of 135.00, thus denoting that the bulls did not fixate here and bears started to increase their influence. The breakthrough of Fibonacci correctional level 23.6 means that this viewpoint is correct. Besides, the GBP/JPY has formed one more bearish combination of candlesticks Falling Three Methods.
However, if the resistance level of 132.96 is breached, then short positions should be cut, since it will lead to rise to 135.00.

The GBP/JPY candlestick analysis for October 8, 2010

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