GBP: British Pound is being technically corrected after the rise in the mid-week

At the Forex currency market the British Pound Sterling rate is being technically corrected today at the Forex currency market after the rise yesterday amid investors’ optimism about the world economic recovery. The GDP rose to the highs of the two months at Forex yesterday.

Forex forecast: MACD indicator is in the negative area for the GBP/USD and continues to go up, confirming a previous buy signal for the pair. Stochastic oscillator is in the overbought zone today and is giving a similar signal.

Forex recommendations: if bullish sentiments for the pair intensify and in case of breakdown at the level of 1.5780, buyers’ targets will be the levels of 1.5830 and 1.5850.

International rating agency Moody's stated today that financial situation in Great Britain as well as in Germany, France and the USA remains stable and is virtually unchanged. This fact confirms the ranking of the countries at the level of AAA.

BRC data released on Wednesday showed that retail prices in Great Britain increased by 2.1% on annual basis in December which was higher than the growth by 2.0% y/y in November. Number of permanent jobs in the UK is growing (54.9 in December against 55.2 in November), however according to KPMG/REC observations, growth rate has reduced. At the same time similar situation is observed in the sector of temporary jobs (52.8 in December against 53.5 in November). According to   KPMG/REC findings, the situation in the employment sector in Britain is stable, the growth continues, however the growth rate has slowed down.

According to the representatives of the British Chamber of Commerce sharp increase in demand for exports in the country would not be a sufficient factor to stop slowing down of British economy according to the results of QIV 2010 and QI of 1011. Thus, experts of the Chamber believe that although the rate of production is high, low productivity in the service sector still remains a weak spot of the UK economy.

In general this opinion agrees with the earlier forecast made by various agencies. It is possible that such trend will be continued in QII this year.

 

[More]