GBP: British Pound will determine movement direction
At the Forex currency market the British Pound Sterling rate on Monday is close to the opening levels, determining movement direction.
Forex forecast: MACD indicator is in the negative area for the pair GBP/USD and it continues to descend, confirming a pair sell signal. Stochastic Oscillator has come out of the oversold zone and is forming a buy signal.
Forex recommendations: off the market.
Feasible event scenario at Forex: in case of breakdown at the level of 1.5450 the pair will go to 1.5475 and 1.5500. In case of breakdown at the level of 1.5405, traders’ targets will become the levels of 1.5380 ? 1.5350.
Trading floors are closed in Great Britain due to the Christmas holidays.
Note that a week before the New Year can be marked by especially high volatility; therefore trading should be conducted with due diligence.
Looking at the technical picture of the trades it becomes clear that as long as debts of the Eurozone’s peripheral countries will put pressure on the Euro it will pull along the Pound. Macro-statistic calendar is almost empty this week and the data on the housing market, scheduled for the release this week is unlikely to support the Pound.
We would remind that 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%. Number of unemployed in the UK decreased only by 1.2 thousand against the expected reduction by 3 thousand.
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, public sector needs in cash, turned to be low - 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.
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