GBP Mid-day Analysis

The UK Trade deficit hit a 7 month low this morning but that potentially undermining development was partially offset by hawkish comments from the BOE head that UK rates will rise despite the dip in inflation readings! However, we are not sure that players will pile into the long side of the Pound because of hawkish UK central bank talk in the face of ongoing widespread global deflationary fears. Sell downtrend channel resistance of 1.57.