The move up or down on this currency pair will largely depend on the trajectory taken both politically and economic wise. Last positive news coming in from UK saw the courts throwing the ball out of their jurisdiction to parliament whom they urge are the ones to decide if Article 50 will be triggered. Most MPs are against Brexit and now that the results from the past referendum were against them, they want a soft exit. What happened after Brexit saw a rate cut accompanied by QE and this assisted the manufacturing sector and helped lift inflation towards the 2% target. Recent news have buoyed the GBP from their record lows and this will continue in the short-medium term.
The Swedish Krona was devalued after the Riksbank said that they were not in an hurry to raise interest rates as the decision was dependent on the monetary policy stance taken by other economies and further strengthening of the Swedish economy contrary to what economist expected. Technically and basing empirical data from the chart, SEK will continue to lose value in the coming months in my opinion.
To the charts now, look to dump the SEK. Monthly chart shows a clear 3 bar reversal with a pin bar forming last month. That pin bar had a long lower wick forming with an oversold stochastics and has been confirmed this month as the GBP continues to gain ground. For conservatives, Wait till next month and go long if this month candlestick closes as a bull bar.
For swing traders, buy and hold this month while adding long positions with every oversold stochastics in the daily chart. Break above 11.3 will be significant as it is a very strong resistance zone in the daily chart.
For day traders, look to buy when price closes above 11.25 in the 15 min chart. 11.25 represents a zone of resistance in the 15 min chart and break above that will signal continuation of the upper trend in this lower timeframe and congruent with the daily, weekly and monthly charts.
Therefore, today trade as follows:
Stop Loss: 11.20
TP: 1:3 risk reward ratio or trail your profits with a suitable trailing stops.
Have a good trading day.