here are basically three ways that you could enter a trade:
Put in a pending order at the last 1.272 level, with a stop loss guess
Wait for the market to print a strong rejection bar, like a Pin Bar or Outside Bar, then enter the trade, with a stop loss on the other side of the bar
Wait for the market to break through the 1.272 level, then put in a pending order if the market drops below the 1.272 level and use the previous swing high/low as the stop loss.
Most resources will tell you to wait for the level to be rejected, then put in a trade (#2). So let's go with that method for now.
Put in a pending order at the last 1.272 level, with a stop loss guess
Wait for the market to print a strong rejection bar, like a Pin Bar or Outside Bar, then enter the trade, with a stop loss on the other side of the bar
Wait for the market to break through the 1.272 level, then put in a pending order if the market drops below the 1.272 level and use the previous swing high/low as the stop loss.
Most resources will tell you to wait for the level to be rejected, then put in a trade (#2). So let's go with that method for now.