The EUR/GBP currency pair has broken the Fibonacci correction level 38.2, to roll back further. Earlier in a daily graph the EUR/GBP formed a Long Shadows candlestick indicating further downside movement, confirmed further.
This candlestick shows that earlier the EUR/GBP pair made a strong upside movement after an unsuccessful attempt to break the support level 0.8300. However, it reversed near the 0.9000 level. This means that the bulls could not solidify here and the bears started to increase their influence.
The divergence on the RSI and the MACD supports the downside movement.
Break of the Fibonacci 23.6 correction level will prove this viewpoint. In this case we should expect downside movement with a target at 0.8740 where the Fibonacci 38.2 correction level is also located. Its break will target the pair to 0.8650 where Fibonacci correction level 50.0 is also located.
It is worth mentioning that stop orders should be placed slightly above the resistance level 0.9050 as its break will target the pair to 0.9160.
