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28.06.2010 03:00 PM
The candlestick analysis of EUR/GBP for 28/06/2010

Earlier, on a 4-hour chart of EUR/GBP, “Hammer” candle has formed, which signals about bullish motion. In addition, this candle developed around the high of August 2008.
This candle show that earlier the currency pair has been falling during a few days after a failed try of the breakout of the resistance level of 0.8385. However, having come to 0.8180, it reversed. This means that the bulls have become active at this mark, having not allowed the bears fixing here.
Also, Fibonacci correctional level of 23.6 was breached that means that this viewpoint is correct.
If the currency pair breaks out the level of 0.8325, an upward motion to the resistance level of 0.8385 should be expected. On the other hand, long positions should be closed after the breakout of the support level of 0.8180 because it will lead to the reach of new yearly lows.

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