GBP: British Pound Sterling continues to consolidate however purchase volume declines

At the Forex currency market the British Pound Sterling rate continues to go up on Friday, however we can see the decline in the purchase volume today, which was caused by the lack of catalysts.

Forex forecast: MACD indicator is in the negative area for the pair GBP/USD however it goes up, giving a pair buy signal. Stochastic Oscillator is
giving a similar signal today, being in the overbought area.

Forex recommendations: if the current external background is maintained buyers' targets will be the levels of 1.6100 ? 1.6140. Representative of the Bank of England Mr. Posen noted yesterday that he has not changed his opinion regarding the necessity of monetary policy easing in Great Britain. He stressed that his growth forecast in the country is well below forecasts of other members of MPC, as reduction of budget expenditures will inevitably cause reduction in the household consumption.

According to him instruments, which available to the regulator cannot always be fully effective in combating the bubbles -Posen is convinced that inflation of the stock market bubbles would be very difficult to track. According to the report of the Confederation of British Industry industrial production in the UK will remain moderate over three months, although more and more British companies intend to expand spending to ensure clients requests.
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 stresses that it will be wrong to start monetary policy
tightening, while having a lot of spare capacity in economy. The regulator believes that monetary committee has not assessed in full the effect of the budget expenses reduction.

[More]