This pair has been range bound for a number of weeks following the shock brexit result. Following the large downside move, we have seen a period of consolidation, with the pair trading firmly within the range of 1.2875 and 1.3430. The previous weeks trading saw a rejection of the upper bounds, followed by a bearish move back into the consolidation zone. The price currently sits above a major area of support, with the two main EMAs along with a rising trend line all compacted. If we see a break below this level, then we can be confident in a further move down to retest the support at 1.2875.