GBP: British Pound correction didn’t keep waiting

At the Forex currency market the British Pound Sterling rate is traded downward on Tuesday morning after two consecutive sessions of growth. So far the currency has no reasons for strengthening.

Forex forecast: MACD indicator is in the negative area for the pair GBP/USD as it crossed the signal line top-down the day before, sell signal remains intact. Stochastic Oscillator has touched the overbought zone, giving a pair buy signal.
 

Forex recommendations: off the market.
 

Feasible event scenario at Forex: in case of breakup at the level of 1.6240 the pair will move to 1.6250 and 1.6270. If the level of 1.6200 is broken down sellers’ targets will be 1.6180 and 1.6160.

According to the released BCC survey, 1q GDP in Great Britain is expected to come out at the level of 0.6-0.7%. Besides 1q sales among manufacturers may reach the level of +8 points against 4q level of +24 points, orders may decline to +22 points against +19 points seen previously.
1q sales among service providers are expected to come out at the level of +6 points against 4q level of +5 points, orders may grow to +5 points from -7 points seen previously.

Important macro-statistics will be released midday showing the data on Markit Services PMI in Great Britain in February.
The Bank of England will hold a meeting on Thursday this week, but is likely to leave the benchmark interest rate unchanged. Currently the key rate remains at 0.50% per annum.

According to the Minutes of previous meeting of the Bank of England 6 members of MPC voted for keeping interest rate at the previous level. In addition, 8 people were for preserving current volume of the assets redemption program. Posen voted for the growth of QE by 50 billion pounds. Therefore, balance of forces in the Monetary Committee has remained unchanged, which frustrated bulls who expected indications of imbalance. Following the meeting of the Bank of England it became known that interest rate was kept at the previous level of 0.50% per annum, volume of debt securities was also left unchanged – 200 billion pound sterling.

 

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