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28.12.2010 01:00 PM
Candlestick analysis of the GBP/USD for December 28, 2010

 

On a 4-hour graph the GBP/USD is bouncing off after a drop to 1.5355. Nevertheless, the viewpoint on this pair is still bearish as the downtrend still remains. Earlier the pair dropped sharply after it failed to break out the resistance level of 1.5900.
Earlier on a 4-hour graph the GBP/USD formed the combination of candlesticks Bearish Engulfing which indicates the decline, confirmed further.
This combination of candlesticks developed after the currency pair could not break through the resistance level near 1.6085-1.6096, which means that the bulls did not solidify here. Further the bears started increasing their influence.
A breakthrough of 1.5841 means that this point of view is correct.

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