GBP: Sales of British Pound will probably continue

At the Forex currency market the British Pound Sterling continues to be under pressure from traders on Tuesday, although the volume of sale is not high.

Forex forecast: MACD indicator is in the positive area for the pair GBP/USD and it going down, giving a pair sell signal. Stochastic Oscillator is going down in the neutral zone, giving a similar signal.

Forex recommendations: in case of breakdown at the level of 1.6180, traders’ targets will be the levels of 1.6150 and 1.6110. If a downward breakdown does not take place, the pair will continue to consolidate close to the current levels.

As it became known today, real estate market in Great Britain is getting stable, as per the data from  Royal Institute of Chartered Surveyors; balance of prices increased to -26 % in February against the previous value of -31%. At the same time price balance is still in the negative area, as long as house prices remain at the highs since summer last year.

The UK data released yesterday showed that balance of production volume in the manufacturing sector declined to 25 points in QI, as per EEF estimates, against the level of 33 points in QIV.

At the same time, balance of new orders in the manufacturing sector of the UK decreased to 20 points in QI against the previous level of 32 points.

The data released on Friday showed that house prices in the UK fell lower that lower than it had been expected in February: -0.9%, according to Halifax, against the growth by 0.8% in January. The prospect for the real estate market remains not the most positive: low employment along with the expectations of the interest rate increase does not contribute to consumer interest.
The UK data released earlier showed that houses prices reduced by 0.2% m/m (-2.7% y/y), in February, as per Hometrack estimates. The Pound did not respond to the statistics, continuing to keep eye on the external background. The UK statistics released on Tuesday demonstrated that houses prices continued to increase in February – by 0.3% m/m, according to Natianwide estimates. At the same time the index reduced by 0.1% on annual basis. According to the experts of the agency, recovery remains weak and real estate sector is in no hurry to grow up.

The fact that different agencies demonstrate different data indicates lack of unified approaches in estimation of the real estate market.
On Thursday, 10 March next meeting of the Bank of England will be held, where interest rate decision will be made - investors will be interested in the follow-up comments of the regulator. Meanwhile interest rate is kept at the level of 0.5% per annum.

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