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The pattern started when the pair rebounded from 1.2529 and after testing resistance levels at 1.2609 and 1.2636 it has slowed down at the latter level. Current market sentiment is equally divided between bears and bulls, but the indicators on aggregate point at bull market outbreak on 4H and 1D time horizons. Long traders could focus on the daily resistance level at 1.2646. If this level is breached, next target could be at 1.2659.
The Stochastic indicator points at a bear market outbreak on the 4H horizon. Short traders could focus on the daily support level at 1.2613. If the pair breaches this level, next possible target could be at 1.2601.
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