Despite the bullish MACD divergence, it is advisable to wait for a convincing break above 1.25, in which case the pair could rally to 1.2603 - 1.2750 levels.
Another failure around 1.25 followed by a break below the previous week's low of 1.2302 would increase odds of a bearish break below 1.20 handle.
Another failure around 1.25 followed by a break below the previous week's low of 1.2302 would increase odds of a bearish break below 1.20 handle.