Following up on my last post on this pair, the wedge support on 15 Dec was broken and our target was 1.2326 that was reached on 20 Dec. I also mentioned that a close below 1.2326 would open up to the Oct lows near 1.2090. Price action over the last 48 hours confirmed that 1.2326 holds as resistance on a daily closing. It seems as if the pair is trying to form a base at 1.2200 and a close below this price could be favourable for further selling. A re-test of 1.2326 followed by a bearish signal could also provide a good opportunity to sell. The challenge is if you are not in a trade already it will require discipline to find an entry tor a good risk/reward ratio as the 1.2090 target is just about 110 pips away, so don’t be in a hurry and if nothing sets up for a sell, leave it alone as it has given a reward of 300+ pips. A daily close above 1.2326 would negate the bearish bias for now.