FX.co ★ The EUR/GBP candlestick analysis for 08/11/2010

At daily graph the EUR/GBP pair has formed the combination of candlesticks Bearish Engulfing, which indicates the downside movement.
This combination of candlesticks shows that the currency pair was showing the upward movement during several weeks after the failed attempt to break through the support level of 0.8067. However, having come closer to 0.8950 the pair reversed. This means that the bears increased their influence here and the bears could not fixate.
The breakout of the Fibonacci correction level 38.2 and support level of 0.8626 confirms this viewpoint. In this case the downside motion with the target at support level of 0.8462 is expected.
The stop orders should be set slightly above 0.8821, since the breakthrough of theis mark will target the pair at 0.8950.