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Double Bottom Brewing for EUR/GBP

EUR/GBP was trying to form a rounded bottom in July, through part of August after finding support at 0.7874. However, price retreated from 0.8036 and respected a previous resistance pivot. The daily RSI held below 60, showing maintenance of the bearish momentum, so when price started to fall, a bearish continuation outlook was at hand. However, traders bid up EUR/GBP at 0.7891 and price is once again at 0.8036 after the start to this week. This price action essentially forms a double bottom. 

(EUR/GBP Daily Chart 9/8)

If price does break above 0.8040, we can see a possible bullish correction. However, considering there is a prevailing downtrend, let's limit the bullish outlook to 0.8150-60 for now. This is an area that contains a support/resistance pivot and the 200-day simple moving average.

Now, taking a look at the weekly chart, we can see that the pivot in the 0.8150-60 area extends back to 2012. Also, there is a falling trendline that might meet the current rally attempt below this area.

So, while we can expect some bullish attempt in the short-term if a double bottom is formed, we should have a conservative bullish outlook for now. Until a price bottom is clearly formed, there is still downside risk towards the 0.7764, 2012-low.

(EUR/GBP Weekly Chart 9/8)