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Pound Rockets Up as Inflation Ignites

Yaron Mazor

The Pound has provided a surge of momentum upwards. Stronger than anticipated inflation data yesterday helped the British currency. Tomorrow the Bank of England is on the calendar.

Adventurous Traders Needed for Pound

For traders with a sense of adventure and speculative courage, the Pound may be the most interesting trade on the board. The Pound rampaged higher on Tuesday as inflation data beat expectations handily.

GBP/USD 1H Chart

As of this morning, the Pound is trading above the 1.33 level against the U.S Dollar and traders should expect further tests of its value as the day progresses.

Bank of England in the Cards

The Bank of England will issue their Monetary Policy Summary tomorrow. And while no one believes the Bank of England will increase its interest rate Thursday, traders’ perceptions will be confronted.

GBP/USD 4H Chart

If the U.K central bank admits it will have to consider raising its interest rate early next year, it could add to Pound speculation. The British currency is testing highs not seen since July of 2016.

Pound Surviving all Battles

Even as Brexit concerns shadow the U.K, the Pound has fought its way through various battles and continues to emerge stronger. Resistance appears to be around 1.34 for the Pound and support is likely around 1.32. Risk management is urged for those considering trades of the British currency.

GBP/USD Daily Chart

In the short term, we believe the Pound may be negative. Mid-term and Long-term we are unbiased.

Yaron Mazor is a senior analyst at SuperTraderTV.

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This article was originally posted on FX Empire