Pair’s bullish break from the flag pattern would open doors for a rise to 1.3308 (50% of 1.1920-1.4690) – 1.3340 (23.6% of 1.4690-1.2923).
However, short-term averages 5-DMA and 10-DMA stand overstretched hence fresh offers around 1.3308-1.3340 is likely to push the spot back to 1.31 handle.
Conversely, a bearish break from the flat pattern would push the spot back to 1.31 handle. Further losses are unlikely given the sharp sell-off since Jan has led to a loss of momentum.
Continuation of the bearish trend is seen only below 1.29323 (Mar 18 low).