FX.co ★ Candlestick analysis of the EUR/GBP (long-term outlook)

This week the EUR/USD is demonstrating the downside movement after a slight pullback. The outlook is still bearish, as earlier the EUR/GBP has formed the combination of candlesticks Bearish Engulfing on the downtrend. Moreover, the breakout of the support level of 0.8535 confirms this point of view. Now the decrease to 0.7750 should be expected.
The downwards movement is supported by the fact that this combination of candlesticks developed near the upper limit of the downtrend, where the bulls did not manage to solidify and the bears started increasing their influence and a rebound took place.
It is recommended to close short positions in case the Fibonacci correction level 50.0 is breached, as it will mean that the downtrend is broken out and the currency pair is targeted to 0.98.