Looking at the H4 chart, price has entered our sell entry at 1.2287, which is an overlap resistance along with a 127.2 Fibo extension. If price were to reverse, it could drop towards the take profit level at 1.2194, which is an overlap support. The stop loss will be placed at 1.2440, which is a swing high resistance.
It is worth noting that there is a bearish divergence between price and the RSI, which could potentially indicate a reversal in momentum.
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