EUR/GBP candlestick analysis for July 29, 2011 2011-07-29
In a 4-hour graph the EUR/GBP currency pair is demonstrating a decline for another test of the support level 0.8720. Earlier in a 4-hour graph the EUR/GBP formed a Dark Cloud Cover candlestick combination indicating downside movement confirmed further. This candlestick combination was demonstrating strong upside movement after a fail to break 0.8720. However, it reversed near 0.9083. It means that the bears activated near 0.9100 and did not allow the bulls to fixate. Fixation below the Fibonacci correction level 23.6 denotes that this point of view is correct. This caused a decline to the support level 0.8860 where the Fibonacci correction level 61.8 is located as well. Its break caused downside movement to 0.8720. If it fixates below 0.8720, it will allow the pair to reach 0.8600. It is worth mentioning that stop loss should be placed slightly above the resistance level 0.8891 as its break will target the pair to 0.9000.