GBP: British Pound continues to grow, approaching three- month highs

At the Forex currency market the British Pound Sterling rate has been growing for 9 consecutive session, approaching confidently to three-month highs.

Forex forecast: MACD indicator is in the positive area for the pair GBP/USD; it has crossed the signal line from the bottom up and confirms a previous buy signal for the pair. Stochastic Oscillator is giving a similar signal today, remaining in the overbought zone.
Forex recommendations: if bullish sentiment is maintained in the market and in case of breakdown at the level of 1.6060 buyers’ targets will be the levels of 1.6100 and 1.6130.

The UK labour market data will be made public today which can affect alignment of forces in the pair. In any case corrective pullback will do no harm.
According to the data released earlier inflation in Great Britain amounted to 3.7% in December against the forecast of 3.4%.This is another evidence proving that the Bank of England will raise interest rate soon, market believes that this is a resolved issue already, as inflation has remained above target level of the regulator for 11 months. Earlier the Pound was supported by statistics on the level of consumer confidence Nationwide which increased to the level of 53 points in December against the previous value of 45 points. It seems that the rise in income of population at the end of the year provided support to the indicator.

International rating agency Moody's stated this week that financial situation in Great Britain as well as in Germany, France and the USA remains stable and is virtually unchanged. This fact confirms the ranking of the countries at the level of AAA. It is worth noting that at the meeting of the bank of England yesterday interest rate was maintained at the previous level of 0.5% per annum.

Meetings of the regulator are scheduled for: 10 February, 10 March, 7 April, 5 May, 9 June, 7 July, 4 August, 8 September, 6 October, 10 November, 8 December.

 

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