GBP: British Pound continues to grow

At the Forex currency market the British Pound Sterling rate continues to grow steadily amid general upswing of the market

Forex forecast: MACD indicator is in the positive area for the pair GBP/USD and goes up, giving a pair sell signal. Stochastic Oscillator remains in the overbought zone, giving a similar signal.

Forex recommendations: in case of breakdown at the level of 1.6730 the pair will retest local highs at 1.6745 and will move further to 1.6755.

The rise of Pound Sterling in the last two days is explained by the general upswing in the market – as long as the U.S. Federal Reserve keeps the rate in the previous low range, maintaining the opinion that the rate will be kept low for a long time, the market will use the news to its advantage.
Statistics released yesterday showed that the UK GDP increased by 0.5% on quarterly basis (+1.8% y/y) in QI, which agreed with the forecasts and was taken favourably by investors at Forex.

Minutes of the last meeting of the Bank of England released earlier showed that balance of power in the Monetary Committee remained unchanged: 6:3 and the regulator still have no intention to start monetary tightening policy.

It is hardly probable that the rate will be raised before July-August this year.

Current budget of the UK, excluding intervention in the financial sector, showed deficit in the amount of 10.442 billion pounds in March against 11.468 billion pounds a year earlier.

The data released last week showed that consumer confidence in Great Britain increased to 44 points in March, as per Nationwide study, against the level of 39 points in February. At the same time index of expenditure rose to 66 points versus the previous level of 53; expectation index went up to 66 points against the 51 previously. Therefore, confidence index in the UK has moved away from the lows, which is a positive factor for the British economy. The data released today showed that CPI in Great Britain grew by 0.3% m/m (+4.0% y/y) in March.  Sterling sluggishly responded to this statistics – for over a year inflation in the UK has been considerably higher than the significant level of 2% to which the Bank of England adheres.
The Pound moves upward at the moment just following the market trend.

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