On the 4-hour chart, the third wave of the higher level (3) forms, within which the wave 1 of (3) forms as a wedge. Now the local correction of the lower level iv of 1 has developed. If the assumption is correct, the pair will grow within the wave v of 1 to the levels of 1.3429–1.3626. In this scenario, critical stop loss level is 1.2771.
Main scenario
Long positions will become relevant during the correction, above the level of 1.2771 with the targets at 1.3429–1.3626. Implementation period: 5–7 days.
Alternative scenario
The breakout and the consolidation of the price below the level of 1.2771 will let the pair go down to the levels of 1.2398–1.2168.
Scenario
Timeframe Weekly Recommendation BUY Entry Point 1.3186 Take Profit 1.3429, 1.3626 Stop Loss 1.3110 Key Levels 1.2168, 1.2398, 1.2771, 1.3429, 1.3626
Alternative scenario
Recommendation SELL STOP Entry Point 1.2765 Take Profit 1.2398, 1.2168 Stop Loss 1.2885 Key Levels 1.2168, 1.2398, 1.2771, 1.3429, 1.3626