Double Bottom: However, the ability to hold support at 1.57/1.5690 in the Thursday US session suggests the correction is not over, and that the market is seeing a double bottom. (A pattern with 2 relatively similar price lows followed by a rally above the price high of the pattern – 1.57). Then if a rally pushes above 1.5786, we are looking toward a short-term extension of this current upswing from 1.5271 toward 1.59. At this point, the RSI reading can provide some clue as to momentum, because a reading above 60 would suggest a lost of bearish momentum in the daily time-frame, and a rally above 1.59 opens up 1.61, 61.8% retracement, especially if another support pivot can be established above 1.5780.
GBP/USD Technicals - Expanded Flat or Double Bottom?
Double Bottom: However, the ability to hold support at 1.57/1.5690 in the Thursday US session suggests the correction is not over, and that the market is seeing a double bottom. (A pattern with 2 relatively similar price lows followed by a rally above the price high of the pattern – 1.57). Then if a rally pushes above 1.5786, we are looking toward a short-term extension of this current upswing from 1.5271 toward 1.59. At this point, the RSI reading can provide some clue as to momentum, because a reading above 60 would suggest a lost of bearish momentum in the daily time-frame, and a rally above 1.59 opens up 1.61, 61.8% retracement, especially if another support pivot can be established above 1.5780.
