GBP: British Pound declines again in the middle of the week

At the Forex currency market the British Pound Sterling rate demonstrates decline on Wednesday morning as part of the correction after three days of growth.

Forex forecast: MACD indicator is in the negative area for the pair GBP/USD and after breaking through the signal line from top to bottom, it started to give a sell signal. Stochastic Oscillator is increasing in the neutral zone and is shaping a buy signal.  

Forex recommendations: off the market.Feasible event scenario at Forex: in case of breakdown at the level of 1.6200, the target for purchase will be the levels of 1.6180 and 1.6150. If downward breakdown does not take place, the pair will consolidate close to the current levels.

British Prime Minister Cameron stressed yesterday that situation in the Eurozone impacts negatively on the country, and the UK should not be involved in helping Greece, as Eurozone is strong enough to prevent its own collapse.In addition, according to the study of industrial trends in June by CBI, total orders increased by 1% against the fall of 2% in May.

The volume of orders CBI in June rose by 13% against +20% in May.Representative of the Bank of England Mr. Fisher said that at the moment British economic forecast is vague, since risks are incorporated both in inflation expectations and in weak growth as well. According to him, it will be more difficult for the Central Bank to cope with deflation than inflation; however despite temporary inflation rise, MPC intends to achieve its medium term objectives. As for the interest rate, Fisher noted that the rise will be required, if wages begin to grow, however, it is not necessary to change monetary police now.The politician also touched upon the issue of the Pound value. He believes that government should not influence on the rate of the Pound and that the currency looks fairly stable since 2009.  

Earlier, Finance Minister of Great Britain Mr. Osborne said that the country is on the track to recovery although monetary and credit side of the economy remains weak. According to him the British economy continues to struggle with difficulties, which will eventually lead to way out of the problems. As it became known in the middle of the week, consumer confidence index Nationwide in Great Britain rose to 55 points in May against the forecast of 45 points, a maximum growth on monthly basis in 2005. Thus, royal wedding had a stimulating effect. As reported in the edition of “Independence”, the Bank of England must be prepared to save national economy from the threat of double dip recession, and according to the comments of BDO representative, the regulator shall leave interest rate at the current level of 0.50% per annum and do not use it as a shield against inflation. Rating agency Moody's warned Great Britain earlier that the country can lose its AAA rating due to the inefficient fiscal policy.

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