FX.co ★ EUR/GBP candlestick analysis (long term view)

The EUR/GBP has been trading without any changes this week. However, earlier the pair closed the gap formed in the beginning of the week, which seems to be a negative signal for the market. Besides, the EUR/GBP cannot fixate above the range 0.8280-0.8680.
As mentioned before, if the EUR/GBP is back to the established range, this will indicate the formation of a “bullish trap”, which will probably cause further decline.
At the moment the viewpoint at the pair is still bearish since the EUR/GBP has formed a candlestick combination Bearish Engulfing on the downtrend.
Downside movement is supported by the fact that this candlestick combination has formed near the upper limit of the downtrend where the bulls did not manage to solidify and the bears started to increase their influence. Further a rebound took place.
As mentioned before, successful breakthrough of the support level near 0.8430-0.8450 targeted the pair to 0.8143.
It is worth highlighting that in case the Fibonacci correction level 50.0 is broken short positions should be closed since it will denote that the downtrend is breached and the pair will be targeted to 0.98.