If we do break down underneath from here, then the market clearing the 200 day EMA could open up the possibility of a move down to the 1.35 handle, which of course is a large, round, psychologically significant figure and the 50 day EMA. Breaking below that would make the entire move above the downtrend line a bit of a “throw over”, or what some people call a “false breakout.” Either way, it would be very negative, and I think this market would probably break down quite a bit. At that point, I would anticipate a move down to the 1.32 level, but I do not see that happening unless the US dollar suddenly strengthens against everything at the same time. That is not impossible, but it is worth noting that even when the US dollar has strengthened, the British pound has been a bit of an outlier. I do not see anything on this chart to suggest that it will continue to be.