The EUR/GBP currency pair closed up last week. At present, the pair tests the Fibonacci correctional level 50.0. The fact that the EUR/GBP had breached the Fibonacci correctional level 38.2 means that the pair will test the resistance level of 0.9160 soon, where the Fibonacci correctional level 61.8 is.
Earlier on a weekly graph, the EUR/GBP formed Hammer candlestick that is a bullish signal. The uprising movement is supported by the fact that this candlestick emerged near the support level of 0.8070, where the bears did not fixate and the bulls started to increase their influence and a rebound happened.
This candlestick points to the fact that the currency pair was declining after failed attempt to break through the resistance level of 0.9411. However, having come closer to 0.8067 it turned back.
The fact that the EUR/GBP has successfully breached the Fibonacci correctional level 23.6 confirms this viewpoint.
On the other hand, the long positions should be cut if the support level of 0.8070 is broken through, as it will lead to the mark of 0.7693 (October low 2008).
