Candlestick analysis of the GBP/USD for 24/11/2010
Earlier on a 4-hour graph the GBP/USD currency pair formed the combination of candlesticks Bearish Engulfing, which indicates the downside movement, confirmed further.
This combination of candlesticks emerged after the currency pair could not break through the resistance level near 1.6085-1.6096, which means that the bulls did not manage to solidify here, and the bears started increasing their influence.
The breakout of 1.5841 denotes that this viewpoint is correct. After a rollback the decline to 1.5651 is expectable.
However, it is worth pointing out that if the resistance level of 1.6096 is breached then short positions should be closed, as it will lead to advance to 1.6175.
