We can clearly see that on the 4h time frame price has formed an ascending channel structure, which lines up with the Elliot wave theory. Currently looks like price has completed the E wave in the form of an ending diagonal corrective structure(rising wedge in an uptrend which acts as a reversal pattern.).On the 1h timeframe the relative strength index and the MACD were showing signs of regular bearish divergence, thus providing me with multiple confluence factors, which strongly enables me to consider taking this trade. Ill be waiting for price action confirmation, such as strong bearish candlestick close past the corrective structure.
Comment:
Price has continued its move to the upside, which is an indication that there is still a bullish bias over this pair. Its important to be patient in such situations and wait for price action confirmation before entering. Clearly it appears that price didn't react to the double top level and its actually making its way to the ascending trendline forming the bigger ascending structure. Ill be looking to see how price will react to this level. we could potentially start seeing some significant price rejections of the top of the structure. In addition this will ultimately complete the pattern, so its not wrong to expect possible bearish moves to the downside.