On the 4-hour chart, the downward correction is forming as a wave ii of 3. Now the wave (c) of ii, within which the third wave of the lower level iii of (c) has ended, is developing. If the assumption is correct, after the local correction iv of (c) the pair will fall to the level of 1.2444. The level of 1.2680 is critical for this scenario.
Main scenario
Short positions will become relevant during the correction, below the level of 1.2680 with the target at 1.2444.
Alternative scenario
The breakout and the consolidation of the price above the level of 1.2680 will let the pair grow to the level of 1.2939.
Scenario Timeframe Weekly Recommendation SELL Entry Point 1.2587 Take Profit 1.2444 Stop Loss 1.2645 Key Levels 1.2444, 1.2680, 1.2939 Alternative scenario Recommendation BUY STOP Entry Point 1.2690 Take Profit 1.2939 Stop Loss 1.2605 Key Levels 1.2444, 1.2680, 1.2939