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

The EUR/GBP is demonstrating a rebound off the upper limit of the downtrend. A return to the range 0.8280-0.8680 might initiate further selling.
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.