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

At a daily graph the EUR/GBP pair is testing the Fibonacci correction level 50.0. In case this level is broken through we expect the decline to the support level of 0.8462, where the Fibonacci correction level is placed.
Earlier on a daily chart the EUR/GBP has formed the combination of candlesticks Bearish Engulfing, which indicates the downwards movement.
This combination of candlesticks shows that the currency pair was demonstrating the upside movement during a couple of weeks after the failure to breach the support level of 0.8067. Nonetheless, the pair reversed having come closer to 0.8950.This means that the bears activated here and the bulls could not strengthen.
The breakout of the Fibonacci correction level 38.2 and the support level of 0.8626 confirm this point of view.
It is recommended to place stop-orders above 0.8821, since the breakthrough of this mark will target the EUR/GBP at 0.8950.