, price was being held at confluence area of major resistance 23,6 retracement and TL 2, it then broke out of TL 3 and retested that TL 3 and major resistance and then..pushed down to nearest support which is a confluence area of 38.2 retracement and 8EMA (and also 4H 200EMA). Now BC leg is formed as it's a 88.6 retracement of AB leg, and we can see a possible setup.
Move to 4H timeframe, we will be waiting for more confirmation. We would want to see price breaks 38.2 retracement and 200EMA and retest it to enter a short on this pair.
TP 1 will be at 1.2230, confluence of 50 retracement and my TL 1, along with nearest minor support.
TP 2 will be at 1.2040, confluence of 78.6 retracement of leg XA (127.2 retracement of leg BC ) and daily 200EMA (which we can see will apparently reach that area too) where Pattern will be fully formed. We need to see what price action will do at TP 1 to enter this position.
SL will be around 1.2360, not a fixed one but we will see what price action is doing there and decide whether to close the position or not.
(I apologize if there are any mistakes on my english.)