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FX.co ★ The GBP/USD candlestick analysis for 27/10/2010

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Forex Analysis:::2010-10-27T08:26:36

The GBP/USD candlestick analysis for 27/10/2010

The GBP/USD rebounded from the support level of 1.5650. Nonetheless, the viewpoint on the currency pair remains bearish.
Earlier on a 4-hour graph, the GBP/USD had formed Shooting Star candlestick that sets the signal for decrease.
This candlestick appeared after the currency pair could not break through 1.6100, which indicates that the bears started to increase their influence.
The breakthrough of Fibonacci correction level 23.6 confirms this point of view.
The breakout of the support level of 1.5751 targeted the currency pair to Fibonacci correction level 61.8 with the next target to 1.55.
However, in case the resistance level of 1.5947 is broken through, the short positions should be closed, as it will lead to upturn to 1.6100.

The GBP/USD candlestick analysis for 27/10/2010

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