Bulls are starting to look tired following last week’s rejection at 1.2040 resistance. The 1.1875 handle acted as support in late Aug and early Sept. The channel is intact and the pair is still bullish, however this week’s move so far should be a concern for bulls. The 1.1875 handle is still acting as support, but there is a struggle to make higher highs and not far away from the September low at 1.1849.
If bears can close below the channel support near 1.1830/50 we can see a move down to 1.1670 and a break below this handle would open up to the 1.1490 and 1.1300 support areas.