GBP: British Pound continues to recover

At the Forex currency market the British Pound Sterling rate continues to grow, exceeding the level of 1.6082.

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 is giving a pair buy signal today, being in the neutral zone.

Forex recommendations: if current sentiment is maintained, buyers’ targets will be the levels of 1.6140 and 1.6160. However, it is worth noting that at 12.30 Moscow time, consumer prices index in the UK will become known, which can affect forces alignment in the pair.

As the study, made by CEBR, the Center of Economic and Business Research, said, the clouds continue to thicken over the British real estate market, which was especially notable last month. Thus, according to the Center’s estimates prices for houses 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 yesterday, 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). However, market believes that the regulator will have to start monetary policy tightening due to the high levels of inflation. According to estimates of the British economist Roger Bootle, the Bank of England will announce the increase of the rate in May this year.

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