Technical Update - Directions and key levels for EURUSD double bottom, GBPUSD reversal pattern, EURGBP likely resuming downtrend

• EURUSD strong support at 1.0665. Forming double bottom pattern
• GBPUSD bottom and reversal pattern indicating rebound
• EURGBP could test key strong support at 0.84 once again. Breaking it this time perhaps?

EURUSD has twice bounced from key strong support at 1.0665, forming a very short-term double bottom formation. For a confirmation of a reversal, a daily close above 1.0765 is required. If that occurs, there is upside potential to around 1.0815, which is around the 0.618 retracement of the June bearish move (red Fibonacci levels) and the 1.618 projection of the double bottom (blue Fibonacci levels).

However, there is strong overhead resistance in the form of a declining 55 daily moving average currently around 1.0765, and above that, there are both the 100 and 200 moving averages around 1.08.

A daily close above 1.0815 could lead to a continued bullish push towards 1.0850 and 1.09.

If EURUSD instead breaks below 1.0665—ideally closing below for confirmation—it will most likely fuel a sell-off down to the next support at around 1.06. If that scenario plays out, it could quite possibly trade lower towards the Q3 2023 low around 1.0448. See weekly chart.

RSI is showing negative sentiment, indicating the breakout is likely to be to the downside. A daily RSI close above 60 is required for a confirmation of a bullish trend.