Price is currently sitting in the top half of this channel and I am waiting for the to complete. A smaller potential reversal zone lies within a larger defined by the X-point of this , so our stop loss (as always with a ) should exceed X in case price wants to test that level again.
The potential reversal zone was defined using the of the AB-leg, the of the XA-leg and structure present.
Targets are the 0.382 and 0.618 levels of the previous move up. This would make for a 1:2 and 1:3 risk/reward ratio for TP1 and TP2 respectively.