Since Mid-November, Successive Lower Highs have been demonstrated below the depicted H4 downtrend line around the price levels of 1.2870 and 1.2780.
Shortly after, before a quick bullish recovery on December 12, there was a quick bearish decline towards the price level of 1.2500.
A bullish Head & Shoulders pattern is being demonstrated on the H4 chart with a neckline located around 1.2660-1.2680. Bullish persistence above 1.2660-1.2680 is mandatory for confirmation. Pattern confirmation projects a bullish target towards 1.2880 again.
Friday's price action demonstrates the recent bullish breakout above the depicted downtrend line. This enhances the bullish side of the market as well.
Please take into consideration that the current bullish movement towards the price zone of 1.2680-1.2700 should be watched cautiously as this price zone corresponds to the backside of the broken consolidation range.
Bullish breakout above 1.2680-1.2700 is needed to continue further bullish advancement towards 1.2880 where there is the upper border of the previous consolidation range.
On the other hand, the current scenario may develop as a bearish flag pattern provided that the bearish persistence below 1.2660 (corresponding to the daily low) is maintained on a daily basis. The projected target for the bearish flag pattern is located around 1.2300.
