Talking Points:

• There are a range of trend and breakout opportunities across the sterling-based pairs

• The Pound has been pushed sharply higher in recent months on aggressive rate forecasting

• Should the BoE corroborate or crush the ambitious rate outlook, the sterling can see heavy volatility

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GBPUSD has been pushed to the edge of a multi-year congestion pattern on the back of a dollar tumble. The next push for break or reversal, though, likely rests with the pound. The sterling has surged in recent months on the backdrop of a sharp upgrade in rate forecasts. Despite the Bank of England's (BoE) forward guidance for rates to hold at their current, exceptionally low levels until 2016; the market has moved to price in a more timely upgrade to yields. These expectations have growth somewhat extreme - opening the market to a speculative gap from current conditions. Should the upcoming BoE minutes confirm or deny these forecasts, the sterling stands to experience extreme swings.

Market conditions change, and our strategy should reflect those changes. We have coded the DailyFX-Plus strategies for Breakout, Range and Momentum to adapt to these market shifts.