The EUR/USD pair is demonstrating a strong bullish movement which was maintained within the depicted bullish channel. However, on Friday the market witnessed some bearish retracement in reaction to the upper limit of its movement channel around price level of 1.2580.
The bearish movement expressed on Friday is probably resembling a Head & Shoulders reversal pattern which will be targetting at the lower limit of the channel after breakdown of the neck line around 1.2490.
The lower limit of the movement channel, two important Fibonacci Levels & SMA 100 are located between 1.2310-1.2360 (S2 & S3) where price action should be watched for a valid low risk BUY entry with SL located below 1.2230 which corresponds to 78.6% of Fibonacci level.
The most significant Resistance level is located around 1.2575, this price level was tested last week expressing bearish reaction which pushed the EUR/USD pair towards the lower limit of the depicted movement channel. That's why bullish movement should break through this level in order to make other bullish swings.