#FTSE #GBPUSD Reversal?

Here is a comparison chart of the FTSE and GBP. As the Sterling devalued the FTSE started to price in inflation and pushed completely in the opposite direction. Which makes sense, since you require more currency to buy same amount of goods and services. As such the UK stock market will likely show higher nominal revenue and profits. Again NOMINAL not inflation adjusted. Today consumer price index was higher than expected and came in at 1.6% vs the forecast 1.4% and previous 1.2% year over year. As we all know nothing goes straight up, there will be some corrective move which is what I am suggesting with this chart based on fundamental and technical reasons.

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You can clearly see what happened after I posted this chart and hopefully learned something in the process. :)