On the 4-hour chart the correction is developing as a wave 2 of (5), shaped as flat. At the moment the wave c of 2 is forming as a momentum, within which the fifth wave of the lower level (v) of c of 2 is developing. If the assumption is correct, the pair will fall to the level of 1.2390. The level of 1.2553 is critical for this scenario.
Main scenario
Short positions will become relevant during the correction, below the level of 1.2553 with the target at 1.2390.
Alternative scenario
The breakout and the consolidation of the price above the level of 1.2553 will let the pair grow to the levels of 1.2792–1.2920.
Trade
Scenario
Timeframe Weekly Recommendation SELL Entry Point 1.2504 Take Profit 1.2390 Stop Loss 1.2565 Key Levels 1.2390, 1.2553, 1.2792, 1.2920
Alternative scenario
Recommendation BUY STOP Entry Point 1.2560 Take Profit 1.2792, 1.2920 Stop Loss 1.2480 Key Levels 1.2390, 1.2553, 1.2792, 1.2920