GBP: British Pound Sterling is under sale again

At the Forex currency market the British Pound Sterling is traded downward on Tuesday morning, continuing the rollback which started yesterday when the currency followed the trend of external background.

Forex forecast: MACD indicator is in the negative area for the pair GBP/USD and it goes down which gives a pair sell signal. Stochastic Oscillator is giving a similar signal today, being in the neutral zone.

Forex recommendations: taking into account external background and possibility that bears can be back for the pair, in case of breakdown at the level of 1.5860 the pair will go to 1.5820 and 1.5770.

Great Britain actively participated in the talks regarding Irish debts and problems in the banking sector of the country; British Finance Minister Osborn stressed yesterday that Irish government had to make difficult decisions and that the country did not have flexible currency rate. However, the politician emphasized that the UK will not take part in the developing of a constant anti-crisis mechanism, as they have domestic problems to settle.  And the UK has them plenty.

The UK statistics released last week 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 last 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.

Representative of the Bank of England Mr. Posen noted earlier 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 are 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.
 

The UK macro-economic calendar is uneventful again today, therefore the pair GBP/USD will move in compliance with external background.
 

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