EURUSD correction is close to testing the 0.618 retracement at 1.0773. Key question: will it stop here and bounce, or will the sell-off continue, pushing EURUSD down to the 0.786 retracement at 1.0726?

The keytop that will be the strength indicator RSI: will it bounce from the 40 threshold or close below?
If closing below, there is a great likelihood EURUSD will drop to 1.0726, possibly lower.
If bouncing off, the positive sentiment would be intact and EURUSD is likely to rebound.

In case we see a rebound, EURUSD is likely to resume a bullish trend. A daily close above 1.0850 will confirm that scenario playing out.

However, EURUSD is currently trading below the declining 55 and 100 moving averages, which is putting a damper on any bullish attempt.

GBPUSD is, at the time of writing, breaking below the support and 0.618 retracement at around 1.2777.

A daily close below is likely to further fuel the sell-off down to the support and 0.786 retracement at around 1.27.

Similar to EURUSD, the strength indicator RSI will be key: will it bounce from the 40 threshold or close below? If closing below, there is a great likelihood GBPUSD will drop to 1.27, possibly lower to the 1.26 area.

If GBPUSD is closing the day back above 1.2780, a rebound could be seen. A daily close back above 1.2890, a bullish trend has been established.