In my opinion, the double bottom at 1.1500 marked the end of the A wave of the depreciation that corrected the impulse rally from 1.0340 to 1.25556 and the pair may be beginning wave B.
I expect the pair will rally at least to 1.20+ or a little higher than that. Those who know the Elliott Wave theory are aware that the B wave of the correction is the most “capricious” and the hardest to trade. I’ve marked its expected development on the screenshot.
After the end of the wave B there should be a wave C, which is usually an impulse formation consisting of five subwaves developing in an opposite direction of the main trend and it is pleasant to trade.
The C wave may return the pair to 61.8% Fibo of the rally or a little lower than that.
The good news is that the Elliott wave theory is certain about one thing – formations of five waves don’t develop on their own. So once the A-B-C correction is over we can expect a new impulse rally, which will be both easy and profitable to trade, especially for those who keep long term positions.