Reason for the trading strategy (technically):
Price is now testing our major at 1.2582 ( , , impulsive structure, horizontal swing high resistance) and we expect a strong reaction from this level to drive price down to 1.2407 support ( , horizontal overlap support). It’s important to note the intermediate at 2.2458 ( , breakout level). We can also see a new element formed which is the divergence on price vs , this is always a good signal that a reversal is impending and on the horizon.
(34) sees major resistance at 61% where we expect a corresponding reaction from. We can also see divergence vs price signalling that a reversal is impending.