GBP: British Pound continues to grow in the middle of the week

At the Forex currency market the British Pound Sterling rate continues to grow on Wednesday with the help of the support from fundamental factors received yesterday. This afternoon, the UK statistics is the scheduled for release, which can change forces alignment in the pair GBP/USD.

Forex forecast: MACD indicator is in the positive area for the pair GBP/USD and continues to move along the signal line, not giving a clear signal. Stochastic Oscillator continues to give a pair buy signal today.

Forex recommendations: if current market sentiments maintain buyers’ targets can become the levels of 1.6230 and 1.6260/70.

Investors are waiting for the inflation report from the Bank of England at 12.30 today, which will demonstrate economic situation. In addition data on a number of unemployed in January will be known at 13.30 and the Head of the Bank of England, Mervyn King will deliver a speech.

We would remind that statistics released yesterday showed that CPI level in the UK increased by 0.1% m/m (+4.0% y/y) in January against the growth by 3.3% y/y in December.

As the study, made by CEBR, the Center of Economic and Business Research, indicates, the clouds continue to thicken over the British real estate market, which was especially evident last month. Thus, according to the estimates of the Center, houses prices will drop by 1.7% in the UK this year versus estimates of growth by 2.2%, made in November. It is worth noting that the forecast was lowered up to 2014, to 9.1% against 16% previously. 

Analytics of the Center believe that the rise in prices can start in 1012 gradually, with the easing of credit conditions in the country.

As the newspaper “The Telegraph” said earlier, British inflation feels under increased pressure, which will be demonstrated in the official statistics, scheduled for the release on Tuesday. Economist of the edition believes that index of retail prices can soar to the 20- year highs.

The key event for the Pound last week was the meeting of the Bank of England, which, however, did not bring any surprises, since the rate was left at the level of 0.5% per annum as well as the volume of assets redemption program (200 billion pounds). 

 

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