The pair has broken its uptrend channel to the downside and is forming a potential head and shoulders formation while holding below its faster MA and above its 200 day MA and is currently testing the 1.3040 support which acts as the neckline to the formation.
A possible correction to the upside which would also test the broken channel is a possibility as the second shoulder still needs to develop.
Sell at 1.3002 after a break below the neckline with a stop loss at a1.3141 and a target near the next support at 1.2730.
This provides a risk/reward of 128/272.
Goldenschild Asset Management