Watch the Slow Playalong: Variation 3 online guitar lesson by Tierra Negra from Magic Gypsy Chords & Rhythms
Place the capo at the 3rd fret.
Variation 3 starts with the same chord as variation 2, but the third chord is a half barre chord in the 5th position. Chord number 4 is the fascinating Eb-Phrygian chord. Your bass is on the low E-string. Make sure that you hear the open G- and E-string.
When you play the arpeggio, rest your thumb into each string.