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We observe the pullback of the EUR/GBP currency pair after reaching the mark of 0.8418. Nevertheless, the continuation of the uptrend with the target at 0.8445 is expected.
Earlier, on a 4-hour chart of EUR/GBP, “Hammer” candle has formed, which signals about a rising motion. This candle demonstrates that this currency pair was decreasing during several days after a failed try to break through the resistance level of 0.8385. However, having come closer to 0.8067, it reversed. This means that the bulls activated at this point having not allowed the bears to fix there.
The breach of Fibonacci correction level 23.6 means that this viewpoint is correct one. Further, within the upward trend there was formed a bullish combination of Rising Three Methods candlesticks, which emphasized the bullish dominance on the market.
On the other hand, long positions should be closed after overcoming the support level of 0.8300, as it will open the way to 0.8217.
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