GBP: British Pound got stuck in the range

At the Forex currency market the British Pound Sterling seems to get stuck in the range; the currency has failed to go beyond it for the fourth session already. Activity of the Pound is not expected to be high today, as trading floors in London are still closed.

Forex forecast: MACD indicator is in the negative area for the pair GBP/USD and it continues to go down, confirming a pair sell 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 1.5450 the pair will go to 1.5480 and 1.5510. In case of breakdown at the level of 1.5400, traders’ targets will become the levels of 1.5380 and 1.5350.

It became known yesterday that according to Hometrack estimate houses prices in the UK has been declining for the six consecutive months. This had a negative impact on the Pound and resulted in sale at the thin market.

At the same time the situation in employment sector still remains complicated. Unemployment rate in the UK increased to 7.9% in QIII against the previous level of 7.8% and the forecast of 7.7%. Number of unemployed in the UK decreased only by 1.2 thousand against the expected reduction by 3 thousand

Balance of payment in QIII amounted to -9.6 billion pounds against -5.2 billion pounds; final data on GDP growth rates showed the level of 2.7% y/y against 2.8% y/y earlier.

In addition, public sector needs in cash, turned to be low - at the level of 16.8 billion pounds. At the same time tax revenues rose by 3.1 % y/y, which became an annual maximum; furthermore, the level of net public borrowing in November amounted to 23.3 billion pounds against 17.4 billion pounds for the same period a year earlier.

At the moment according to the technical pattern of the trades the Pound is waiting when the traders will be back at the market and meanwhile it is being correlated in pairing with the pair EUR/USD.

 

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