To analyze the values better let’s look at the weekly chart;
Weekly graph
Downtrending value started in 2007 and still going. GBP has one of the lowest value in last decades. So these times might be a good chance to buy GBP. But for the timing of trade, we have to look closer to the price.
Daily graph & double top/bottom movements
In daily graph, we can see repeating double tops/bottoms again and again (very similar to GBP/USD). In next week or the week after we may complete the second bottom and see a steep upmove which could take us to 1,22-1,29 channel. To confirm this move, we have to see the value breaks the down channel resistance.
Strategy1 (short term) when the price will reach to channel’s resistance;
sell GBP around ~1,2
Target: the second dip ~1,17
Stop loss: just above the resistance of channel
Strategy2 long term when the price will make the second dip;
Buy GBP ~1,17
Target1: ~1,19 (depending on the time of this move) resistance of the channel %1,7
Stop loss: 1,16 support line
Target2: 1,22 resistance line %4,3
Stop loss: if the price tries to return in channel, downtrend channel line
Target3: the big target 1,28 %9,5
Stop loss: 1,215 just below the support/resistance line
These are not trade advises. Just my opinions on the graphs.
Weekly graph
Daily graph & double top/bottom movements
Strategy1 (short term) when the price will reach to channel’s resistance;
sell GBP around ~1,2
Target: the second dip ~1,17
Stop loss: just above the resistance of channel
Strategy2 long term when the price will make the second dip;
Buy GBP ~1,17
Target1: ~1,19 (depending on the time of this move) resistance of the channel %1,7
Stop loss: 1,16 support line
Target2: 1,22 resistance line %4,3
Stop loss: if the price tries to return in channel, downtrend channel line
Target3: the big target 1,28 %9,5
Stop loss: 1,215 just below the support/resistance line
These are not trade advises. Just my opinions on the graphs.