When defining the potential reversal zone (PRZ) for a , we look at the projection of three levels. I: the of XA, II: an AB = CD pattern and III: a BC expansion converging in the same area (in this case 1272 BC ). This defines a tight zone, about 26 pips wide, represented by the orange lines in the chart. Should price action reverse convincingly, I would enter long. SL goes 10 pips behind the next . TP1 = of AD and TP2 = of AD.
There are 220 pips to be made (if this pair follows the script) and the trade has a reward – risk ratio of 2.0!