GBP: British Pound will determine movement direction at the beginning of the week

At the Forex currency market the British Pound Sterling rate is traded slightly downward on Monday, being corrected a little after the rise earlier.

Forex forecast: MACD indicator is in the negative area for the pair GBP/USD and it goes down giving a ground for a pair sell signal. Stochastic Oscillator is giving an antipodal signal.

Forex recommendations: off the market.

Feasible event scenario at Forex: in case of breakdown at the level of 1.5775 the pair will go to 1.5830 and 1.5860. If the level of 1.5720 is exceeded, traders’ targets will be the levels of 1.5680 and 1.5650.

The UK macro-economic calendar is empty today; therefore market will rely on the external background.
Note that the Bank of England meeting will be held this week; interest rate decision and comments on the current economic situation will be made at the meeting. Interest rate of the Bank of England is now at the level of 0.5% per annum and the next meeting of the regulator is scheduled for 9 December. 

The area of discussion last week was British housing market – the data released on Wednesday showed that real estate prices in the UK declined by 0.3% m/m (+0.4% y/y) in November as per Nationwide,  while the forecast of reduction was by 0.4% m/m.

It became known earlier that the UK houses prices as per Hometrack, reduced by 0.8% on monthly basis (-1.1% y/y). The situation in the sector continues to be ambiguous. Earlier the LSL/Acadametrics estimations showed that houses prices in England and Wales went up by 0.3% in October, the rise is going on for the sixth consecutive month, increasing by 6.1% on annual basis; analytics in the real estate sector contradict one another: Halifax stated that houses prices in October increased by 1.8%, Nationwide insisted that the indicator fell by 0.7%.

Earlier Nationwide economists stressed that if the trend which started in the early summer will continue in November and December; there is a chance that the prices will drop by 1% by the end of the year. Rightmove clarified that they noticed the oddity in indicators in October already; however they assumed that traders deliberately start overpricing in order to keep back property until better time.

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