What we have above is the four hours chart and you can call that move to the upside as you wish but no impulsive move. Therefore, we should look for corrections and, at this very moment of time, it looks like a double combination, with an x wave that connects two different corrective waves that point to the upside: a flat an a zigzag.
I would say at the highs there we ended a wave a blue, and now we should head for a b wave blue that should go minimum 61.8% when compared with the previous wave a but we are preparing to book the profits a bit earlier.
Our recommendation will be to sell a move below 1.6600 area with 1.6820 stop loss and three different targets for booking 1/3 at each: 1.6459, 1.6260 and 1.5950 as the final target, just shy above the 61.8% as buyers are expected below.
That b wave ping to the upside is the end of a zigzag and from a technical perspective, we have two possibilities, both pointing towards the same direction:
one would be the market will for a flat and now we should see a five waves structure for c wave pink, in which case our entry will come;
the other would be that this zigag to the upside is actually only wave a of a contracting triangle that should break lower and the whole pattern from the lows will be called a triple combination. In this case our trade will be triggered only after the triangle will break lower as the entry is below the possible second x wave pink.
It remains to be seen if markets will confirm our scenario.
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