On the technical side, this pair has been trading inside a on the since March and inside a on the hourly timeframe for 20 days. It touched the upper of the last Friday and is showing signs of reversal. There is a horizontal hourly S&R zone just above it as well as a key daily level and an ascending that served as support before and should now act as resistance. On top of that we have regular divergence, pointing to underlying weakness and a possible change of direction and the oscillator was overbought when price touched the top of the . That makes a total of 6 factors, all providing confluence for a short-term bias to the downside.
The stop would go above the daily level. TP1 lies just above an ascending support line. TP2 lies just above the lower of the , which intersects with the bottom of the daily channel. See the chart for details. In terms of trade management, when TP1 is hit I would take profit on half of my position and roll my stop loss to breakeven, enjoying a risk free trade towards TP2. As always consult your own trading plan and apply the rules of entry, exit and risk management you normally use and are comfortable with.
There are 390+ pips to be made and the trade has a reward – risk ratio of 6!
P.S. I included a link to my last published trade idea for this pair, where both profit targets were hit for a total of 600 pips.