FX.co ★ The EUR/GBP candlestick analysis (long term outlook)

The EUR/GBP currency pair is trading with a slight advance after a huge drop from the Fibonacci correction level 50.0. In addition, by the end of the last week the EUR/GBP formed a bearish combination of Bearish Engulfing in a downward trend. It is recommended to close long positions opened earlier and open short positions with a target at 0.8090 and stop-orders slightly higher than Fibonacci correction level 50.0. A breakthrough of the support level 0.8535 will mean that this point of view is correct and lowering to 0.8090 is expectable.
Earlier at a week graph the EUR/GBP formed a Hammer candlestick, which is a bullish signal. In favor of the upside movement comes the fact that this candlestick was formed near the support level at 0.8070, where "bears" could not solidify and the "bulls" started increasing their influence and a sharp rollback took place.
This candlestick shows that the currency pair was moving down after a failed effort of breaking through the resistance level of 0.9411. However, coming closer to 0.8067, it made a reversal.
The fact that the EUR/GBP broke through the Fibonacci correction level 23.6 means that this opinion is correct one.