I feel "confident" because this price behaviour is common after a diamond pattern.
I know this pattern very well, i have traded succesfully it before:
A diamond pattern 80% of times means trend-change. After it price usually makes deep retracements (0.7860 or 0.8860) but most important will not MAKE NEW HIGHS.
According to EW price usually forms a series of 1-2s or , this means a strong third wave is expected.
I will try to enter enter short near the 0.7860 and 0.8860 fib retracement.
We can use this setup also.
- corrective channel
- 1.27 fib extension
Entry price around 2050.