FX.co ★ The GBP/CHF candlestick analysis for 05/11/2010

At 4-hour graph the GBP/CHF currency pair has formed a combination of candlesticks Bearish Engulfing, which points to the downside movement.
The breakout of 1.5627 and Fibonacci correction level 38.2 confirms this point of view. Now the decline to 1.5541 with the next target at support level near 1.5378 should be expected.
This combination of candlesticks shows that the pair was moving upwards during several days after it failed to break the support level of 1.51. However, having come closer to 1.5964 it reversed. This denotes that the bears become active here and did not allow bulls to solidify.
It is recommended to set the stop orders slightly above 1.5825 since the breakthrough of this mark will target the pair at 1.5964.