GBP: British Pound goes up at the end of the week still staying within the range

At the Forex currency market The British Pound Sterling rate is going up on Friday amid favourable external environment.

Forex forecast: MACD indicator is in the negative area for the pair GBP/USD and it is moving along the signal line not forming a clear signal. Stochastic Oscillator is giving a pair buy signal, being in the neutral zone.

Forex recommendations: off the market.

Feasible event scenario at Forex: in case of breakdown at the level of 1.5650 the pair will go to 1.5700 and 1.5730. If the level of 1.5500 is exceeded, traders’ targets will be the levels of 1.5460 and 1.5400.

The economic situation in Great Britain has not changed significantly today.

Note, that the Pound has been moving reluctantly since the beginning of this week – it seems that the currency is basically strong  due to which it does not respond very actively to the current background. However it is worth remembering that the situation in Great Britain is far from being stable.
The data on Wednesday showed that real estate prices in the UK reduced by 0.3% m/m (+0.4% y/y) in November as per Nationwide estimations against the forecast of reduction by 0.4% m/m.

It became known earlier that the UK houses prices as per Hometrack, reduced by 0.8% on monthly basis (-1.1% y/y). The situation in the sector continues to be ambiguous. Earlier the LSL/Acadametrics estimations showed that houses prices in England and Wales went up by 0.3% in October, the rise is going on for the sixth consecutive month, increasing by 6.1% on annual basis; analytics in the real estate sector contradict one another: Halifax stated that houses prices in October increased by 1.8%, Nationwide insisted that the indicator fell by 0.7%.

Earlier Nationwide economists stressed that if the trend which started in the early summer will continue in November and December; there is a chance that the prices will drop by 1% by the end of the year. Rightmove clarified that they noticed the oddity in indicators in October already; however they assumed that traders deliberately start overpricing in order to keep back property until better time.
Interest rate of the Bank of England is at the level of 0.5% per annum. The next meeting of the regulator is scheduled for 9 December.

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