But with a new surprisingly strong PMI report, "I think it's going to be very difficult to justify a massive amount of QE," he told CNBC's Melissa Lee.
Kelly argues that while most investors are expecting about $75 billion in quantitative easing, the actual number is likely to be smaller - possibly $50 billion. "On that, I think you get some strength in the British pound."
Kelly wants to buy the pound against the dollar at 1.58 with a stop at 1.57 and a target of 1.6150.
, chief markets strategist for J.P. Morgan Asset Management, Institutional, thinks this week's
European Central Bank meeting
could also help Britain. She expects Mario Draghi, the bank's president, to point to a number of positive European economic reports, and that could give the pound a lift.
You can watch the discussion on the video.
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