The Bank of England is meeting today at 12:00 GMT. The expectations are that interest rates will remain unchanged and asset purchase levels will also stay the same. The key focus investors will be looking for is if the Bank of England taper bond purchases. If they do, and the Bank of England also bring forward interest rates, then immediate GBP strength can reasonably be expected.

The tricky element comes with finding which currency to pair a strong GBP with. The simplest option is probably the euro as the EURGBP is at a key technical weekly trendline.

If the Bank of England does taper, expect immediate EURGBP selling.

Key Trade Risks: If the Bank of England does not announce bond tapering then this trade outlook will not be viable.