After four weeks of depreciation that led the pair from 1.31243 (19th March 2018) to 1.25437 (11th April 2018) it found support to begin a correction.
The double bottom that formed on the H4 time hinted at the beginning of the correction, and my expectation is that the pair will rally correctively up to around 1.2690 – 1.2700.
The movement, however, continues developing within the trend channel (in blue) and after the end of the correction the depreciation to the support around 1.2350 -1.2370 may resume. That can be observed best on the W1 time frame.
What remains is to see what the market will choose – whether there will be a breakout below the support trend line of the channel (in blue) or there will be a continuation of the consolidation within the channel’s boundaries.