The price is contained inside a uptrend channel and has dropped from the 1.3240 resistance where a double top was formed.Further downside is expected from the current price as the pair has completed a correction on the H4 timeframe.
Sell at 1.3116 in anticipation of a probable channel breakout with a stop loss placed above the resistance at 1.3262 and a take profit at 1.2862.
This provides a risk/reward ratio of 143/257.
The pair has completed a upside correction above the Fibo 61.8 level of the 1.3291-1.3003 descendent wave formed as part of the drop from the double top and is holding below its fast MA and above its 200 period MA.
Further downside is expected with a valid channel breakout.
Sell at 1.3083 with a stop loss at 1.3188, above Fibo 38.2 and a target at 1.2848.
This provides a risk/reward ratio of 103/232.
Goldenschild Asset Management