Market focus this morning returns to the more mundane, namely the BOE inflation report and press conference with Gov Mark Carney, and it will be interesting to see whether Cable can continue to build on its recent platform of support in the 1.5 region.

This bounce higher has taken the pair back to test the 1.53 resistance but since this move the pair has fallen back and is now in consolidation as we wait the BOE.

Key elements to watch out for in the conference will be any hint of negative inflation, which has not been helped by the current slide in oil prices.

The contents of any letter Mark Carney will be writing to the Chancellor to explain this situation and the expectation for UK economic growth, a hugely important political item given the election in May.

Editor’s Note: Equity investors/traders can use the Currency Shares British Pound Sterling Trust (FXB, quote) ETF to take positions in the yen without a FOREX account.  The ETF looks to track the price of the British Pound Sterling (GBPUSD), minus ETF fee. The fund seeks to reflect the price of the British Pound Sterling (GBPUSD) with the shares representing a cost-effective investment relative to investing in the FOREX market.

Anna Coulling is a trader with over 16 years’ experience and founder of AnnaCoulling.com