Yes...she earned the reduction down to 1.25 and you should have gone ahead and taken it the next morning.
She's bouncing now from going so low and her liver releasing stored sugar and hormones to bring her back up. Bounces can take up to 3 days (6 cycles) to clear, but when they earn a reduction, you should take it and try not to focus on the higher "bounce" numbers.
IF they bounce high enough, it's OK to keep the same dose ONE more time (we call it "shooting through the bounce") but then the next cycle you should reduce. By shooting through the bounce, you give the higher dose once more just to help them get through it and hopefully start coming down sooner.
It's possible that last night she went low again and is bouncing again today...Since you didn't get any tests after the PMPS last night, we can't know what might have happened, but that may very well be why she was pink this morning
If you reduce, and after they're done bouncing they don't come back down into good numbers, you go back up to the last "good" dose