FXstreet.com (Barcelona) - Recent Dollar weakness, which has promoted a 300-pip rally in three days has also created a potential double bottom in the making, according to Nicole Elliott, technical analyst at Mizuho Corporate Bank.

Pound's rally from 1.5890 low last week has established a potential double bottom figure on the shaping at 1.5040/50 (Dec 30/Jan 6 low), says Elliott: A potential, if crooked, 'double bottom' in the making as the USD loses a little ground against a raft of other currencies (except the Venezuelan Bolivar which was devalued by up to 50% Sunday).

Resistance levels, according to Elliott, lie at 1.6129, 1.6194 and 1.6242. On the downside, support levels lie at 1.6063, 1.6035 and 1.5915.