Forex Analytics from LiteForex of 04.11.10: GBP: British Pound Sterling continues to grow, however prospects are obscure

At the Forex currency market the British Pound Sterling rate is traded upward on Thursday, continuing growing trend started earlier.
Forex recommendations: off the market.

Feasible event scenario at Forex: in case of breakdown at the level of 1.6125 the pair will go to 1.6175 and 1.6200. In case of breakdown at the level of 1.6070, traders’ targets will become the levels of 1.6020 and 1.5970.

The Bank of England meeting is scheduled for today so traders will await the regulator’s decision on the interest rate and volume of the assets redemption program.

The data released on Thursday morning showed that Halifax houses prices in Great Britain increased by 1.8% m/m in October against expected growth by 0.6% m/m. GDP intensified following statistics release and consolidated.

It became known earlier that asking prices for houses reduced by 0.9% m/m (-0.1% y/y) as per Hometrack estimation. Economists pointed that pace of decline accelerated after some stagnation while the annual rate of decline had been observed for the first time in January this year. It became known last week that the UK houses prices as per Nationwide estimation continued to decline in October and fell by 0.7% on monthly basis (+1.4% y/y). Nationwide economists point that if the trend which started in the early summer continues in November and December, the prices will have chances to drop by 1% by the end of the year.

It became known this week that consumer prices in Great Britain increased by 0.2% (+2.2% y/y) in October as per BRC estimation against the growth by 0.2% m/m (+1.9% y/y) in September.
Thus, the UK statistics is very contradictive which prevents from making far-reaching conclusions.
 

 

[More]