We can see that the recent pin bar has been confirmed with a bearish candle closing beneath the key level at 1.5887. This also invalidates the break out above the recent swing high, any traders who initiated longs on this break will now be trapped and liquidation of those positions will see further pressure to the downside.
Our execution timeframe is the H1 and we can see our usual confluence factors are building up. We can see MACD divergence across the recent highs, price has also made a lower high and produced a Head and Shoulders pattern. With price now below the 50 EMA and showing signs of pull back we will look to take a short trade if we see clean price around the daily pivot point.
Stops will place above R1 with a target at the S1 level.