GBP: British Pound Sterling will determine movement direction against the unstable external background

The British Pound Sterling rate is traded slightly upward at the Forex currency market on Wednesday however it looks more like a technical correction at the moment after yesterday’s fall. 

Forex forecast: MACD indicator is in the negative area for the pair GBP/USD and it goes down, giving a pair sell signal. Stochastic Oscillaotr is giving a pair buy signal, being in the oversold zone.

Forex recommendations: off the market.

Feasible event scenarios at Forex: in case of breakdown at the level of 1.5850 the pair will go to 1.5900 and 1.5950. If the level of   1.5770 is exceeded, traders’ targets will be the levels of 1.5700 and 1.5660.

It became known yesterday that a number of approved mortgage requests in the UK declined to 30.8000 in October against the previous figure of 31.100. It has become one more indication that real estate market in the country is running down. A lot of statistics will be released today. The data on the revised UK GDP in QIII will become known, and also preliminary data on the business investments in QIII and service sector index in September. In addition a member of the Monetary Policy Committee of the Bank of England, Andrew Sentence will make a speech this afternoon. 

Great Britain actively participated in the talks regarding Irish debts and problems in the banking sector of the country; British Finance Minister Osborn stressed earlier 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.

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.

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