High inflation in the UK | 14 March 2022

GBPUSD trading plan:

The BoE forecast consumer price inflation would peak at about 7.25% in April, when household energy tariffs are due to rise by more than half. Now traders think inflation might exceed 8% later this year and reach its highest since the early 1980s. The cost of natural gas used to heat most British homes is 60% higher than before February's meeting. Higher rates will not stop the short-term rise in inflation, and the surge in energy prices will squeeze British living standards. Although Britain's economy regained its pre-crisis size in November, before the Omicron wave of coronavirus cases, output has not caught up with lost growth like in the United States.

Investment idea: sell 1.3052 and take profit 1.2990.