EUR/GBP 1H Chart: Double Bottom

The pattern started when the pair started depreciating from 0.8115; currently it is trading at Fibonacci retracement (23.6% of move since 14th of September)/Bollinger's band at 0.7980/84. Technical indicators on aggregate point at appreciation of the pair. The SWFX market sentiment is bullish as 55% of traders hold long positions expecting pairs augmentation. Long traders could focus on daily pivot (R2)/200 bar SMA/recent peak at 0.7989/92 and Fibonacci retracement (38.2%) at 0.8005.

The Stochastic indicator on 4H time horizon sends a sell signal suggesting that pair might rebound from pattern's resistance at 0.7986.  Short traders could focus on daily pivot (R1) at 0.7972, 20 bar SMA 0.7960, daily pivot (PP) at 0.7948, Bollinger's band/pattern's bottom (25th of September) at 0.7940/37 and pattern's bottom (27th of September) at 0.7924.