Forex analytics of LiteForex of 29.10.2010: GBP: British Pound is being adjusted at the end of the week in spite of the signals

On Friday in the currency market (forex) GBP is being corrected following the market and ignoring technical signals. It proves again our supposition that speculative pressure on GBP is now very high. 

Forex (forex) MACD indicator is in the positive area and it is growing which gives a signal to buy the pair. The signal of stochastic oscillator is the same today being in the overbought area.

Forex (forex) recommendation: Taking into account the external background and trends - out of the market.

However if the optimism prevails in the market the targets of buyers will be 1.6000 and 1.6050.

According to the data released on Friday GfK consumer confidence in the UK rose to -19 from the previous mark of -20. Economists expected to see a decline to -22.

According to GfK over the past 12 months the mood of consumers showed signs of improvement; their perception of the economic picture improved as well. However the expectations for the future 12 months have deteriorated and fell to -20.

It has become known earlier that house prices (according to the calculations of Nationwide) in the UK continued to decline in October and they fell by 0,7% m/m (1.4% y / y). Nationwide economists stress that if the trend gained impetus at the beginning of the summer continues in November and December prices will have a chance to drop by 1% by the end of the year.

Earlier Posen, a representative of MPC, has said that if the growth of inflation is higher than the target mark even by 1% it won’t be critical and to set monetary policy in the direction of quantitative easing it will take some time - more than it was expected. Posen doesn’t think that now it is necessary to stimulate the British economy additionally.

The head of the Bank of England Mr. King has said earlier that the project Basel III which there have been so many talks about last month won’t be a panacea for a new round of financial crisis. However according to the monetary politician the British regulator will not force the banks to comply with the contract although he himself sticks to more strict views on the problem.

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