GBP: British Pound is being corrected after two-day rally

At the Forex currency market the British Pound Sterling is being corrected on Wednesday, following upsurge earlier this week 

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 remains in the overbought zone today, confirming a previous buy signal for the pair, and nevertheless creating prerequisite for a trend reversal.

Forex recommendations: if bearish sentiment intensifies in the market and in case of breakdown at the level of 1.6190, traders’ targets will be the levels of 1.6150 and 1.6110. If downward breakdown will not take place, the pair will continue to consolidate close to the current levels.

The UK statistics released on Tuesday showed that house prices continued to grow in February: by 0.3% m/m, as per Nationwide estimates. At the same time the index declined by 0.1% on annual basis. According to the experts of the agency, recovery remains weak and real estate sector is in no hurry to grow up.

The Pound has almost not responded to the data released earlier (number of approved mortgage requests in the UK rose to 45.7 thousand in January against the value of 42.7 thousand in December; PMI index in production sector amounted to 61.5 points in February as expected). It is external background that keeps giving directions for the movement.

Last week was eventful in terms of the UK statistics: it became known on Friday that level of consumer confidence in Great Britain rose to -28 points in February, as per GfK/NOP estimates, against the previous value of -29 points. The news was moderately optimistic for the Pound; however it did not save the Pound from sales.

According to CBI which was released earlier, decline in sales volume from 37 points to 6 points is quite logical, as the program of reduction in public expenditure gave its first results. At the same time in the retail sector of the country the sentiments remains the most pessimistic since 2009.                                

In addition, the level of retail sales rose by 1.9% m/m (+5.3% y/y) in January against expectations of growth by 0.2% m/m; net mortgage lending in the UK remained  unchanged in January, at the level of STG 1.2 billion.

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