UK POUND MAY REVERSE FROM 1.3254

GBPUSD trading in uper direction since last day after the the BOE Officials comments on Normalization cycle.Speaking at the Bank of England’s Future Forum – an annual event to discuss the bank’s role in serving society - Governor Mark Carney said that while the UK’s departure from the European Union posed risks, the BOE would be ‘nimble enough’ to move monetary policy to bring inflation back to target while continuing to support the economy.  

Inflation in the UK has been above target (around 2%) since February of this year as the effects of a weaker Sterling imported inflation into the UK. The central bank hiked interest rates on November by 0.25% to 0.50%, the first rate hike in a decade, in an effort to control overheating consumer price pressure. Further hikes are not expected until mid-late 2018 as the BOE continues to monitor tepid UK growth.

 Possible Trades

BUY above 1.3255 SL 1.3185 TARGET 1.3380 AND 1.3435

Alternate Trade

SELL  below 1.3120 SL 1.3185 TARGET 1.3030