It's a perfect time to short the retracement and initiate a long position after taking profits.
There is a currently valid downtrend signal, two of them actually, suggesting lower lows.
I don't think the targets will be reached, which is a signal once time expires.
This is a practical way to approach these kind of scenarios, since it allows us to minimize risk.
I'd try to market sell at the open and cover by the time we reach the green square area, and initiate a long from there with a tight stop. First target to partially close the long would have to the be the top of the red square .
If it keeps going we'll try to scale in and keep this initial order running. Second target would be the 1.89 region.
Ultimately the monthly chart gives me a lofty target: 1.9971 as depicted by the dotted line arrow in the background.
Weekly view...broad uptrend in place, this level might be a perfect buy.
Target is a retest of the last high, at the very least. Counter trend short worked perfectly as a bonus.
Good GBP data helps fuel the reversal move now. Watching for a break above today's high for a scale in on the long side.