• The pair continued with its good two-way price action within a broader trading range, held over the past few trading sessions, and seems to have formed a rectangle pattern on hourly charts.
• A rectangle is usually a continuation pattern that forms as during a pause in the trend - bullish in this case, but can also mark significant tops, which can be inferred from the recent price action.
• A convincing break below the 1.3200 handle, leading to a subsequent breakthrough 200-hour SMA will add credence to the bearish outlook and prompt some aggressive selling around the major.
• Below the mentioned region, the pair is likely to accelerate the fall towards testing 1.3155 intermediate support before eventually dropping to sub-1.3100 level to test next support near the 1.3070 region.
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