GBP: British Pound Sterling began to recover

At the Forex currency market the British Pound Sterling rate goes up amid positive external background, however purchase of the Pound has been delayed due to the expectations of the UK statistics today.

Forex forecast: MACD indicator is in the negative area for the pair GBP/USD, it is moving along the signal line, not giving a clear signal. Stochastic
oscillator has not formed a clear signal either on Thursday, being in the neutral zone.
 

Forex recommendations?: off the market. Feasible event scenario at Forex: in case of breakdown at the level of 1.5940 the pair will go to 1.5990 and 1.6040. If the level of   1.5850 is exceeded, traders 'targets will be the levels of 1.5810 and 1.5780.

In spite of positive external factor, daily charts for the pair GBP/USD looks like bearish.  The UK statistics released yesterday was positive in general. Unemployment rate remained at the level of 4.5% in October; while the number of unemployed reduced by 3.7 thousand (in September: +1.3 thousand). Average weekly earnings in the UK increased  by 2.2% in September excluding bonuses.

In addition, the minutes of the Bank of England last meeting was released in the middle of the week, in general it did not say anything new. Thus,
Sentance is still of the opinion that the rates should be raised to 0.75%. The document also stressed that it will be wrong to start monetary policy
tightening, having a lot of spare capacity in economy. The regulator believes that monetary committee does not assess in full the effect of the budget expenses reduction.

The Bank of England believes that the upper limit of the inflation range should be at the level of 3%. However the data released earlier showed CPI
growth by 3.2%. At the same time the UK Inflation in September was 3.1%. According to Mervin King, the Governor of the Bank of England:"if inflation
expectations increase significantly above the target indicator, then, important measures in the monetary policy could be taken  to reduce expectations of the prices rise."

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