FX.co ★ The candlestick analysis of the EUR/GBP

The EUR/GBP rolls back from Fibonacci correction level 50.0. If by the end of the week the pair closes below 0.8707, then the bearish combination of candlesticks Bearish Engulfing will form. In this case it is recommended to close long positions and open short positions with the target at 0.8090.
Earlier on a weekly chart the EUR/GBP has formed Hammer candlestick that indicates the bullish signal. The uprising movement is confirmed by the fact that this candlestick appeared near the support level of 0.8070, where the bears did not fixate and bulls started to increase their influence and a rebound took place.
This candlestick denotes that the currency pair was decreasing after failed effort to break through the resistance level of 0.9411. However, it reversed, having come closer to 0.8067.
The fact that the EUR/GBP had breached Fibonacci correction level 23.6 confirms this viewpoint.