Forex Analytics from LiteForex of 05.11.10: GBP: British Pound is being corrected at the end of the week

At the Forex currency market The British Pound Sterling rate is being corrected today following yesterday’s upswing.

Forex forecast: MACD indicator is in the positive area and it goes up, confirming a previous buy signal for the pair. Stochastic Oscillator is not giving a clear signal today being in the overbought zone.

Forex recommendations: off the market.

Feasible event scenario at Forex: in case of breakdown at the level of 1.6300 the pair will go to 1.6350 and further to 1.6400. If the level of 1.6250 is exceeded traders’ targets will be the levels of 1.6210 and 1.6175.

Yesterday the Bank of England decided to maintain the interest rate unchanged at the level of 0.50% per annum; assets purchase volume was also left unchanged.

The Bank noted that pace of the UK economic recovery slows down not as rapidly as it seems and the latest positive GDP data of the country is impressive. However economists do not exclude that additional stimulation of the economy will be carried out; it is also probable that such decision will be made in February. 

The minutes of the Bank of England yesterday’s meeting will be published on 17 November.
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 and started to consolidate after this statistics release.

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.

 

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