# Sterling strength expected after bottoming out – LCG

## GBP/USD expected to trade at $1.25 in three months’ time and at$1.27 by Q1, 2018

A mix of positive data on the UK economy, and an unexpected surge in inflation pushing the rate of price increases to beyond the Bank of England’s (BoE) 2% target in February, could signal a reversal of fortune for sterling, which has struggled since the country’s referendum on its membership of the European Union, says Jasper Lawler, a senior market analyst at London Capital Group.

“The first reason for a bit more positivity in the market is that it seems like a