GBP: British Pound isdescending again

At the Forex currency marketthe British Pound Sterling rate continues to descend on Thursday, keeping onyesterday’s trend.

Forex forecast: MACD indicatoris in the negative area for the pair GBP/USD and after breaking through thesignal line from top to bottom earlier, it gives a sell signal. StochasticOscillator is going down in the neutral zone and is shaping a buy signal,approaching oversold zone.

Forex recommendations: : incase of breakdown at the level of 1.6000, the target for purchase will be thelevels of 1.599 and 1.5970. If downward breakdown does not take place, the pairwill consolidate close to the current levels.

The minutes of the last meetingof the bank of England was made public yesterday and it is clear now that onlytwo aggressive monetary politicians are left: Wheal and Dale, a new member ofthe MPC Broadbent who replaced ” hawk” Sentence, joinedconservative camp. As a result, 7 votes were against the rise in the interestrate and two for it. The Pound responded with a sharp decline.

Representative of the Bank ofEngland Mr. Fisher said that at the moment British economic forecast is vague,since risks are incorporated both in inflation expectations and in weak growthas well. According to him, it will be more difficult for the Central Bank tocope 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 touchedupon the issue of the Pound value. He believes that government should notinfluence on the rate of the Pound and that the currency looks fairly stablesince 2009.

Earlier, Finance Minister ofGreat Britain Mr. Osborne said that the country is on the track to recoveryalthough monetary and credit side of the economy remains weak. According to himthe British economy continues to struggle with difficulties, which willeventually lead to way out of the problems. As it became known in the middle ofthe week, consumer confidence index Nationwide in Great Britain rose to 55points in May against the forecast of 45 points, a maximum growth on monthlybasis in 2005. Thus, royal wedding had a stimulating effect.

British Prime Minister Cameronstressed earlier that situation in the Eurozone impacts negatively on thecountry, and the UK should not be involved in helping Greece, as Eurozone isstrong enough to prevent its own collapse.

In addition, according to thestudy of industrial trends in June by CBI, total orders increased by 1% againstthe fall of 2% in May. The volume of orders CBI in June rose by 13% against+20% in May.