DEVIATION: 0.3% (BUY GBP 2.6% / SELL GBP 2.0%)
We are looking for a variable deviation of 0.3%. If the Inflation number remained above 2.6%, which is close to BOE´s inflation target, we will BUY GBP. If the Inflation number decreases to 2.0% or less, we´ll look to SELL GBP. Historically, even with a slight difference of 0.1%, market usually overreacts. If our deviation is hit, there is a strong possibility that the market will move 50 pips immediately.
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