The EUR/GBP pair is trading up during this week. Nevertheless, the viewpoint on the currency pair remains bearish, since at the end of the previous week the EUR/GBP had formed the combination of candlesticks Bearish Engulfing on the downtrend.
As it was mentioned before, the breakout of support level of 0.8535 will confirm this point of view. In this case the decrease to 0.7750 is expectable.
In favor of this situation comes the fact that this combination of candlesticks appeared near the upper limit of the downtrend, where the bulls did not fixate and the bears started to increase their influence and a rebound took place.
The short positions should be closed if the Fibonacci correction level 50.0 is broken through, as it will denote that the downtrend is breached and the currency pair is targeted at 0.98.
