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.
href="http://www.cnbc.com/id/15838066/" linktype="External" resizable="true" status="true" scrollbars="true" fullscreen="false" location="true" menubars="true" titlebar="true" toolbar="true" omnitrack="false" hidetimestampicon="false" hidecontenticon="false" contenticononly="false">
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.
Talk back: Tell us what you want to hear about - email us at firstname.lastname@example.org.