We have the broken trendline from late last week at that level along with the 38.2% retracement of the 1.3300/1.2998 drop.

If we close a bit above that level, looks like a greater retracement will play out.

The market got off on the wrong foot this morning, sliding on talk of a very large sell order at the 13:15 GMT ECB fixing and on talk that Berlusconi would throw his hat back into the ring and run for PM again. A short-covering rally after the fix along with word that Berlusconi had decided not to run helped spur the short-covering rally to the present 13111 level.