The picture that is forming on the pair in question is similar to the one that is currently observed on EUR/USD. The price did not decline making an expanding horizontal triangle pattern, as expected, but rose sharply and updated its maximum. Thus, the final diagonal triangle in wave [iii] has probably formed.

If this assumption turns out to be true, then in the near future we can expect a reversal and a strong corrective decline in the formation of wave [iv].

A breakdown of the lower diagonal formation will be a signal to sell trades.

Recommendations: Sell 1.2260, SL 1.2280, TP 1.1800.