There was a sharp reversal on the daily chart, as a result, the pair returned below the level of 1.28500 and, thus, below the high of late November - early December. A reversal candle combination with a "shooting star" was formed. In the longer term, assuming the preservation of this year's range, the pair may decline to 1.24-1.2450, and in the shorter term - to the low of the beginning of December above 1.2600. The decline from 1.2950 can be considered as a correction, the determining factor here will probably be the preservation of the pair below the key resistance at 1.2850. While the pair is lower, a resumption of the decline seems more likely.
There was a reversal on the four-hour chart after a sharp decline from 1.2950. At the same time, absorption was formed, and the very formation of a relatively wide-range candle shows that the direction of least resistance was a decrease. The current upward rebound can be considered as a correction to a decline. In favor of this view is that it remains small in size and much slower than the wave of decline before it.
Resistance levels: 1.2850; 1.2950
Support levels: 1.2800; 1.2700