At the moment the pair is carving out what appears to be a pattern on the 4 hour chart. The height of the pattern from the neckline to the top of the head suggests that a move lower to 1.0850 may be in the cards.
But not so fast. As we all know, a reversal pattern such as this is not confirmed until the neckline is broken. Which means this is a potential reversal pattern until the bears can manage a 4 hour close below neckline support, at which time the pattern will be confirmed.
Summary: Wait for a 4 hour close below neckline support and then watch for a retest of the level as new resistance. Key support comes in at 1.1035 with a measured objective of 1.0850. A move above 1.1390 would negate any selling opportunity.