On the weekly timeframe we are currently stuck between the range that we see displayed 1.28000 acting as resistance and 1.2600 acting as support. We could be positioned to break through the resistance as overall we are in a bullish trend.
Coming down the the H4 timeframe I see a different story. It looks as though price will reject from the 1.27400 area and move towards the downside. This is how I would position the first order for this trade. We can enter now and put stops about 40 pips away. That way if we reach to the lower key level again it will be a 3 RR trade. We could also wait until price breaks towards the upside and tests the 1.27600 level before breaking to the downside.
Coming down the the H4 timeframe I see a different story. It looks as though price will reject from the 1.27400 area and move towards the downside. This is how I would position the first order for this trade. We can enter now and put stops about 40 pips away. That way if we reach to the lower key level again it will be a 3 RR trade. We could also wait until price breaks towards the upside and tests the 1.27600 level before breaking to the downside.