GBP: Long-awaited correction has started British Pound Sterling
At the Forex currency market the British Pound Sterling rate in traded downward on Thursday as the correction started after the 9 days of continuous growth.
Forex forecast: MACD indicator is in the positive area for the pair GBP/USD and is going up, confirming a pair buy signal. Stochastic Oscillator has come out of the overbought zone and is giving a weak buy signal for a pair.
Forex recommendations: in order to make sure that corrective downward movement for the pair intensifies we should see a breakdown at the level of 1.5890, after that, traders’ targets today will be the levels of 1.5850 and 1.5800.
According to the representative of the Bank of England Mr Posen, regulator, who is taking all necessary measures, has performed great services for achieving current stable situation in British economy.
In his view efforts of the Bank of England shall be focused on providing price stability which also includes anti-inflationary steps. We would remind that it became known yesterday that inflation in Great Britain amounted to 3.7% in December against the forecast of 3.4%.This is another evidence proving that the Bank of England will raise interest rate soon, market believes that this is a resolved issue already, as inflation has remained above target level of the regulator for 11 months. Earlier the Pound was supported by statistics on the level of consumer confidence Nationwide which increased to the level of 53 points in December against the previous value of 45 points. A driver for the growth was the rise in income of population at the end of the year.
Meanwhile the market believes that the issue of raising interest rate by the bank of England is only a matter of time. Meetings of the regulator are scheduled for: 10 February, 10 March, 7 April, 5 May, 9 June, 7 July, 4 August, 8 September, 6 October, 10 November, 8 December.
Note, that International rating agency Moody's stated this week that financial situation in Great Britain as well as in Germany, France and the USA remains stable and is virtually unchanged. This fact confirms the ranking of the countries at the level of AAA. It is worth noting that at the meeting of the bank of England yesterday interest rate was maintained at the previous level of 0.5% per annum.
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