Pound has been incredibly strong and maybe will continue until 3 August though we do have some inflation data out on Tuesday and Thursday so we will have to see what’s happening with inflation vs. consumer spending. Carney is looking for positive data to hike and we know that UK inflation is a result of a low exchange rate – exchange rate has been pretty good lately – especially compared to this time last year, maybe that brings inflation down slightly and then on Thursday we see core retail sales and retail sales on trend (low).
In the meantime, this analysis is based on three charts – 10Y Gilts at support, US10Y at support and GBPJPY at resistance. If you are a bear you are paying attention and looking for opportunities to short. If the 10Y and Gilts move higher then a sell on GBPJPY would be a good trade. Price moves up at support and down at resistance. Worth a shot if we get a setup – stop at break even, hero or zero. If you are a bull then WPP is the buy zone.