GBP: Pound Sterling is consolidating however it still remains in a range

At the Forex currency market the British Pound Sterling rate continues the growth on Monday which had started on Friday, while remaining in the channel of 1.5400-1.5645.

Forex forecast: MACD indicator is in the negative area for the pair GBP/USD and is growing, giving a pair buy signal. Stochastic Oscillator is giving a similar signal today, being in the neutral zone.

Forex recommendations: if investors’ current sentiments will be maintained, buyers of the pair will have targets of 1.5550 ? 1.5580 today. If upward breakdown will not take place the pair will consolidate close to the current levels.

Ex-member of the Bank of England Mr. Blanchflower noted on Friday that possible raise of the interest rates by the Central bank can become a real nightmare for the UK Finance Minister Mr. Osborne in a new year. He stressed once more that rates should be kept at a low levels, as their rapid growth will strike a blow on the houses prices and consumption levels.

Osborn noted earlier, that all measures required to improve economic growth have been taken by the country, and budget edition in March will include both new and old steps to stimulate growth. British Finance Minister also stressed the need to continue reforms the country, as the plan of the deficit reduction can stimulate the growth of confidence in the economy.

CIPD, the UK Institute of Personnel Development believes that the situation in the employment sector can be complicated for UK economy in 2011, because unemployment rate can rise to 9% and employment can reduce to 200 thousand jobs. According to CIPD estimates reduction in the public sector will amount to about 120 thousand jobs and about 80 thousand in the private sector. We would remind that British Government plans to reduce the number of staff in public sector by 330 thousand by 2015.

The UK statistics released earlier has become a good support for the GBP (level of money supply in Great Britain increased by 3.3% on monthly basis in November; number of approved mortgage requests increased slightly, although level of net mortgage lending declined to 788 million pounds sterling in November against the level of 1.172 billion pounds in October.) However as it became known on Thursday PMI index in the UK service sector fell to the level of 49.7 in December against the forecast of 52.9 and the previous value of 53.0. 
 

 

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