GBP: British Pound regains after sales

At the Forex currency market the British Pound Sterling regains after two days of sales on Wednesday morning.

Forex forecast: MACD indicator is in the positive area for the pair GBP/USD and is growing, giving a pair buy signal. Stochastic Oscillator continues to go down in the neutral zone, maintaining a pair sell signal. 

Forex recommendations: off the market.

Feasible event scenario at Forex: in case of breakdown at the level of 1.6300 buyers’ targets will be the level of 1.6340. If the level of 1.6265 is exceeded, the pair will go to 1.6250 and 1.6235.

The data released yesterday showed that CPI in Great Britain increased by 0.3% m/m (+4.0% y/y). Sterling sluggishly responded to this statistics – inflation in the UK has been considerably higher than the significant level of 2%, to which the Bank of England adheres.

The UK important data will be published on 27 April – it will be GDP in QI and monetary authorities hope to see the growth by 0.7%. If economic growth will be confirmed the rate can be increased to 0.75% per annum in the medium term. The meeting of the Bank of England did not give any surprises: interest rate was left at the level of 0.50% per annum, assets redemption program was also maintained in the previous volume.

According to the minutes of the last meeting of the Bank of England, 6 members of MPC voted for keeping interest rate at the previous level. In addition 8 people voted for the maintenance of the current assets redemption program unchanged.  Posen voted for the rise in the QE to 50 billion pounds.

It became known yesterday that index of retail prices BRC in Great Britain increased by 2.4% y/y in March against the growth by 2.7% y/y in February. In the service sector sales are expected to be at the level of +6 points in QI against +5 in the last quarter and orders can increased to +5 from -7.

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