The PRZ (Potential Reversal Zone) is an area where price is likely to reverse given the confluence of several Fibonacci levels. Before we open a trade, we have to analyse the price action in the PRZ. Ideally, all the three lines of the PRZ should be touched (tested) before the reversal takes place.
Here we have a in an uptrend. What gives us more confidence that the pattern could be successful is that the bottom of the up-channel is quite far away from the PRZ and the PRZ is at a level where there was a great amount of supply in the past at point X.