On the 4-hour chart, the upward trend is developing within the first wave (1) of the higher level. Now the fifth wave of the lower level v of 5 of (1) is developing, within which the entering momentum has formed as a wave (i) of v, and the correction (ii) has ended. If the assumption is correct, the pair will grow to the level of 1.2650. The level of 1.2152 is critical for this scenario.
Main scenario
Long positions will become relevant during the correction, above the level of 1.2152 with the target at 1.2650.
Alternative scenario
The breakdown and the consolidation of the price below the level of 1.2152 will let the pair go down to the level of 1.1915.
Trade
Scenario
Timeframe Weekly Recommendation BUY Entry Point 1.2334 Take Profit 1.2650 Stop Loss 1.2230 Key Levels 1.1915, 1.2152, 1.2650
Alternative scenario
Recommendation SELL STOP Entry Point 1.2145 Take Profit 1.1915 Stop Loss 1.2220 Key Levels 1.1915, 1.2152, 1.2650