H1 bearish flag in motion, though 1.22 could hinder downside

Since the beginning of the week we have been compressing within what appears to be a reasonably large falling wedge between 1.2467/1.2285. Pattern traders will also note a potential bearish flag forming between 1.2210/1.2242.

In terms of structure, 1.22 is seen nearby, with 1.2250 located above as resistance.

Interestingly, the RSI indicator is producing bullish divergence.