GBP: British Pound tries to recover
At the Forex currency market the British Pound Sterling rate demonstrates intention to recover this morning, using positive external background as a support.
Forex forecast: MACD indicator is in the negative area for the pair GBP/USD and continues to go down, which confirms a Pound sell signal. Stochastic Oscillator still remains in the oversold zone today.
Forex recommendations: if current external background will be maintained and bullish sentiments intensify, buyers’ targets today can be the levels of 1.5500 and 1.5560. It a breakdown will not take place the pair will continue to consolidate close to the current levels.
A lot of UK statistics was released today which proved to be disappointing for the Pound.
Thus, balance of payment in QIII amounted to -9.6 billion pounds against -5.2 billion pounds; final data on GDP growth rates showed the level of 2.7% y/y against 2.8% y/y earlier.
In addition, the Bank of England representative Mr. Fisher noted today that British economy can continue to decline next year. At the same time the Bank still anticipates the risks of strengthening of inflationary pressure.
So, a series of negative statistics on the UK has not terminated yet. Yesterday, investors were upset by weak data on levels of public sector needs in cash, which turned to be at the level of 16.8 billion pounds. At the same time tax revenues rose by 3.1 % y/y, which became an annual maximum; furthermore, the level of net public borrowing in November amounted to 23.3 billion pounds against 17.4 billion pounds for the same period a year earlier.
Moreover the situation in employment sector still remains complicated. Unemployment rate in the UK increased to 7.9% in QIII against the previous level of 7.8% and the forecast of 7.7%. A number of unemployed in the UK decreased only by 1.2 thousand instead of the expected reduction by 3 thousand.
