On a four –hour chart of the EUR/GBP the “Hammer” candlestick gives a signal of the uprising movement. Moreover, this candlestick has been formed around the support level of 0.8440. a reverse from this mark allowed to open long.
“Hammer” denotes that the price has been descending for several days although after getting closer to the level of 0.8440 it made a rebound following a few unsuccessful attempts of a breakthrough. This in its turn means that the bulls have activated at this level without giving the bears a possibility to fixate here.
It is expected that the EUR/GBP pair will rise to the area of 0.8600, where a Fibonacci correctional level 23.6 is located, and the first resistance level. if the price gets through this mark, the currency pair can reach 0.8700, but as the chart shows, in this zone there is a Fibonacci correctional level 38.2, and exactly here the candlestick “Shooting Star” was formed.
On the other side, if the currency pair breaks through the support level of 0.8440, we should expect a falling to 0.8400 (an 11-month low).
A 24-hour and a week charts are not sinalling at the moment.
