GBP: British Pound continues to grow; however correction is on the doorstep

At the Forex currency market the British Pound Sterling continues to grow on Thursday, however all conditions for correction have been created for the pair GBP/USD which is also confirmed by the external background. 

Forex forecast: MACD indicator is in the positive area for the pair GBP/USD and is moving along the signal line, not forming a clear signal. Stochastic oscillator is in the overbought zone, giving a buy signal and at the same time creating ground for the movement reversal.

Forex recommendations: if bearish sentiment intensifies at the market, the pair will go to 1.6080 and 1.6030. If downward breakdown will not take place, bulls’ targets will remain the level of 1.6230.

According to the study of the National Institute of Economic and Social Researches “NIESR”, the Bank of England can raise interest rate three times this year, with the main target to control the growth of consumer prices.

???, ?????????, ??? ?? ????? 2011 ???? ?????? ???????? ?? ?????? 1,75% ? ??????? ????????. ??? ???? ??????? ?? ???????? NIESR ????? ??????? – ?? 3,8% ?? 2011 ??? ? ??????? 2,8%. ?????????, ??? ?????? ??????????? ? ??????? ???? ???????? ?? 8,7% ? ??????? 7,8%.

NIESR has already made not too rosy forecasts. Thus, the Institute recommended the UK government to postpone for some time a program of budget expenses reduction, since the strategy can bring huge losses in economy, rather than benefit. The statement made by the UK Prime-Minister Cameron earlier partly proves that this year will be extremely difficult for the country’s economy. We would remind that as it became known on Friday consumer confidence in the UK fell to -29 in January, as per GFK/NOP, against the previous level of -21. Thus, the index is at its lowest level since 1994, which indicates consumers’ skepticism regarding prospects of the economy in the nearest future.

Yesterday representative of the Bank of England Mr. Sentence noted once again that interest rates in Great Britain shall be increased now, as it will enable to restrain inflationary values. It is also required to   increase of the interest rate consistently to avoid sharp rise in the future.

We would remind that the situation in British economy still remains ambiguous. Statistics released earlier showed that a number of approved mortgage requests amounted to 42 563 against 47 287 last month. Experts’ forecast was 47 000 requests.

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