GBP: British Pound remains under pressure despite growth in the morning

At the Forex currency market the British Pound Sterling rate has made attempts to strengthen on Tuesday morning after three- days of sales; however technical signals indicate pressure on the currency.

Forex forecast: MACD indicator for the pair GBP/USD remains in the positive area and maintains outset movement, not giving any signals. Stochastic Oscillator goes down in the neutral zone and is shaping a sell signal.

Forex recommendations: in case of break down at the level of 1.6465, the pair will go to 1.6425 and 1.6400.

If downward breakdown does not take place, the pair will consolidate close to the current levels.Economic situation in the UK remains almost unchanged this morning.Unemployment rate in the UK was at the level of 4.9% in July. At the same time, level of unemployed increased by 37.1 thousand. CPI in the UK fell by 0.1% m/m (4.2% y/y) In June against the forecast of growth by 0.2% m/m.

Earlier Confederation of British Industry- CBI has reduced GDP forecast for the current year to 1.3% against the forecast of 1.7% in May. According to experts, sovereign crisis in Europe, debt problems in the U.S. and Japanese disasters will not enable British economy to strengthen considerably. Meanwhile, preliminary GDP in the UK increased by 0.2% on quarterly basis (+0.7% y/y) in Q2.

The head of the Bank of England Mr. King noted this week commenting inflationary indices that, CPI can easily reach 5% and MPC can use interest rate or QE to control risks, if required.It is worth noting that inflation in the UK remains unchanged on monthly basis in July (+4.4% y/y) against growth of 4.2% y/y in June. In addition, house prices in the UK reduced by 2.1% m/m (-0.3% y/y) in August, as per Rightmove estimates.

According to RPI estimates, index of retail prices in the country fell by 0.2% m/m (+5.0% y/y) in July; while in June the indicator had demonstrated the same level of +5.0% y/y.It became known last Friday that net volume of borrowing in the public sector of Great Britain was at the level of -stg1.961 billion in July against the value of stg1.350 billion in June.

In addition, other indices also showed that volumes of various public borrowings also went down, indicating fairly high level of effectiveness of the current economic programs.British Ministry of Finance said commenting statistics that tax revenues continue to increase despite poor state of the banks.

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