GBP has broken out against a range of currencies. It is likely to be weak as the prospect of more QE hangs in the air and inflation numbers continue to come in on the upside — which was the catalyst for this latest breakout. There is a downward trend in place. NZD is at the bottom of its long-term range against AUD and is now rolling over, so it may be a better bet for a pair than AUD — and anyway, I am already long AUD against USD and don’t have enough of a read to be “double long”. And the breakout against GBP is through a major support level, so I have chosen NZD from the currency pairs available.

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