Sterling Hysteria or Common Sense?

UK inflation hitting 20-month highs backs one of our main arguments to favouring $1.70 GBPUSD since January: Rather than rejecting GBP strength, the Bank of England will use GBP strength in its favour as a means to contain inflation, instead of resorting to interest rate hikes. But is $1.7150 in GBPUSD too excessive? As we approach Wednesday's release of the UK jobs figures, we issue our latest Premium trades on GBPUSD with 3 new charts and update a crucial chart posted earlier in the year, illustrating a rare technical moving average deviation, bearing key parallels with 2007 and 2004.