GBP: British Pound started the week slightly downward

At the Forex currency market the British Pound Sterling rate trades lower amid absence of new drivers on Monday.

Forex forecast: MACD indicator is rising in the positive area for the pair GBP/USD, volumes are also rising maintaining a buy signal. Stochastic Oscillator remains in the overbought zone today, giving a similar signal.

Forex recommendations: after a technical rollback it is not ruled out go that buyers will turn to the pair at the levels of 1.6380 and 1.6430.

2010-year high for GBP/USD is at the level of 1.6459, but strong stops are at 1.6445/50.
Last week’s British currency strength called forth USD’s weakness that was pressured by absence of decisions on budget. This factor partly remains intact today.

1q sales among service providers are expected to come out at the level of +6 points against 4q level of +5 points, orders may grow to +5 points from -7 points seen previously.

According to the data released the day before, BRC Retail price index in Great Britain increased by 2.4% y/y in March against the increase by 2.7% y/y in February.

Important British statistics will be released April, 27 – 1q GDP that monetary officials hope to have grown by 0.7%. In case the economic growth is confirmed, interest rate in mid-term may be raised to 0.75% per annum.

BOE meeting the day before didn’t bring any surprises: the benchmark interest rate was left unchanged at the level of 0.50% per annum, volume of debt securities was also left unchanged – 200 billion pound sterling.

According to the Minutes of the latest meeting of the Bank of England 6 members of MPC voted for keeping interest rate at the previous level. In addition, 8 people were for preserving current volume of the assets redemption program. Posen voted for the growth of QE by 50 billion pounds.

 

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