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How to Trade the Central Bank Meetfest

Photo: Scott Barbour | Getty Images

Welcome to a busy week for central bank meetings.

Here's how to trade on a big one.

Australia, Britain, Europe, even Iceland - central bankers are gathering in a slew of countries. Brian Kelly of Shelter Harbor Capital, has his eye on the Bank of England.

"It's very difficult to play this game. I don't feel like I have an edge with the European banks" given the uncertainty surrounding Greece, he says. "I'd much rather play the British pound."

Kelly thinks expectations for quantitative easing in Britain are high.

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.

Rebecca Patterson

, 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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Tune In: CNBC's "Money in Motion Currency Trading" airs on Fridays at 5:30pm and repeats on Saturdays at 7pm.

Learn more: The essential vocabulary for currency trading is on Key Currency Terms. Top currency strategies are broken down for you in Currency Class.

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