Intraday Market Thoughts

Sterling Hysteria or Common Sense?

by Ashraf Laidi
Jul 15, 2014 19:49

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.

Every trader in the British pound must be aware of this development, which is found in the trades section of our latest Premium Insights.

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