Technical Trading Tips and Techniques by 
(Please click on the accompanying chart to enlarge.)
As shown on the accompanying GBP/USD daily chart, price has confirmed an approximate double bottom bullish reversal after having broken out above the double bottom’s intervening peak on Tuesday. But in the early morning hours on Wednesday, price has retraced back down significantly. Still, the current consolidation is showing technical signs that the pair may finally be forming the beginnings of a base after a prolonged downtrend over the past several months. A strong re-break above the 1.5500 region would lend considerable strength to the view that a base has indeed formed. If this occurs, further levels to the upside will be noted here.