The idea is based on the indication of possible bullish trend indicated by the breaking of previous bearish channel, and formation of higher high. Support and resistances have confluence with the important fib retracement levels. The price can either break out of current resistance at 23% fib to target 38% fib and the next resistance level (in this case long position can be taken), or can retrace back from the resistance at 23% fib to fall back to previous resistance (new support) level (in which case short position can be taken). Price action has to be watched at the current level to make a decision as to which plan to follow,