GBP: British Pound Sterling still can grow

Buyers prevail over sellers for the British Pound Sterling at the Forex currency market.

Forex forecast: MACD indicator is in the positive area for the pair GBP/USD and has begun to grow, indicating sales resumption. Stochastic Oscillator is growing in the neutral zone today, giving a similar signal.

Forex recommendations: in case of breakdown at the level of 1.6410, level of 1.6430 will be the target for   growth.

Minutes of the last meeting of the Bank of England were released yesterday – balance of power in the Monetary Committee remained unchanged: 6:3 and the regulator still has no intention to start monetary tightening policy. 
It is unlikely that the rate will be raised before July-August this year.

The data released earlier showed that consumer confidence in Great Britain increased to 44 points in March, as per Nationwide study, against the level of 39 points in February. At the same time index of expenditure rose to 66 points versus the previous level of 53; expectation index went up to 66 points against the 51 previously. Therefore, confidence index in the UK has moved away from the lows, which is a positive factor for the British economy. The data released today showed that CPI in Great Britain grew by 0.3% m/m (+4.0% y/y) in March.  Sterling sluggishly responded to this statistics – for over a year inflation in the UK has been considerably higher than the significant level of 2% to which the Bank of England adheres.
According to the representative of the Bank of England Mr. Sentence, inflation in Great Britain can exceed the level of 5% soon. He believes that inflation will go up during the summer. “If we wait until all signals of inflation will turn from flashing yellow to red, it will be too late to raise interest rates from the accommodative level” he stressed in his interview to the foreign news agency.  

Statistics released earlier showed that CPI in Great Britain grew by 0.3% m/m (+4.0% y/y) in March.  For over a year inflation in the UK has been considerably higher than the significant level of 2% to which the Bank of England adheres. Interest rate was kept at the level of 0.50% per annum, program of securities repurchase also remained in the previous volume.  
 

As it became known earlier index of houses prices in the UK increased by 1.7% m/m (+0.1% y/y) in April, as per Rightmove estimates.

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