Forex Analytics from LiteForex of 10.11.10: GBP: British Pound is going up slightly; it is advisable however, to stay off the market

At the Forex currency market the British Pound Sterling is regaining partly from yesterday’s downfall, however prospects and investors’ sentiments are not , therefore it is advisable to stay off the market.  

Forex forecast: MACD indicator is in the negative area for the pair GBP/USD and it goes down, confirming a previous sell signal for the pair. Stochastic oscillator is not giving a clear signal, being in the oversold zone.

 Forex recommendations: off the market.

Feasible event scenario at Forex: in case of breakdown at the level of 1.6020 the pair will go to 1.6070 and further to 1.6100. if there is a breakdown at the level of 1.5960, traders’ targets will be the level of 1.5930, and then 1.5900.

The International Currency Fund believes that the Bank of England should continue to stimulate economy as it seems at the moment that it is necessary to compensate the reduction of the budget expenses. Slow recovery of the banking system in the country is another factor which speaks in benefit of such measure.

Mass media stressed today that a split is taking shape in the Bank of England’s ranks – some Committee representatives do not like that King provides support to the governments’ plans of state expenses reduction. The information is not new in principal, since the Committee members have already expressed their opinion on this matter earlier. 

The data, awaited yesterday was as follows: the level of industrial production in the UK rose by 0.4%, which agreed with the forecasts, it was able to support the Pound for some time; however pressure exerted by the external background yesterday was higher.
The housing market continues to weaken in Great Britain – statistics released on Tuesday showed that comparable retail sales BRC increased by 0.8% y/y in October; total retail sales: +2.4% y/y and houses prices balance RICS in October:-49%, the minimum since 2009. 

It became known earlier that level of 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 level 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 has started in the early summer will continue in November and December, the prices will have chances to drop by 1% by the end of the year.

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