GBP: the British Pound growth was prevented by external background

At the Forex currency market the British Pound Sterling rate continues moving downward on Friday staying however in the last 4 trading sessions’ range, 1.5541-1.5715.

Forex forecast: MACD indicator for the pair GBP/USD continues to go down in the negative area, but starts moving along the signal line, not giving any signal. Stochastic Oscillator is turning around in the neutral zone, giving a sell signal.

Forex recommendations: in case of breakdown at the level of 1.5550, buyers’ target will be the levels of 1.5530 and 1.5510. If breakdown does not take place, the pair will consolidate close to the current levels. 

As it became known today, Gfk Consumer Sentiment in Great Britain increased to the level of -30 points in September against the level of -31 points in August. However in spite of some positive dynamics, index is still near its historic lows and doesn’t drag to historical average. The indicator has moved away from its lows this year, but strong stabilization is still a long way off.

It is worth noting that the indicator of the economic situation fell to -58 points for the last 12 months.

According to the data released yesterday, Nationwide house price index in Great Britain increased by 0.1% m/m (-0.3% y/y) in September. The statistics released earlier showed that house prices Rightmove increased by 0.7% m/m in September. The data on the real estate sector from other leading agencies will be known soon, which will provide a clearer outlook. Meanwhile, we can see the lack of offers as it emphasized by Rithmove and upward pressure from the very low interest rates, which encourage the growth of the house prices; plus to this low level of public confidence to economy and reluctance of people to spend money, caused by obscure economic prospects.

As noted by the regulator the day before, banks shouln’t reinforce market volatility. Besides banks’ capital saving shouldn’t limit lending.

According to the statistics mortgages are reviving in Great Britain: BBA Mortgage Approvals reached 35,226 k in August against the forecast of 33,250 k. The indicator jumped to 2010 highs. One should note that refinancing approvals totaled 27,114 k against 26,229 k before.

In spite of the fact that it’s too early to talk of the about-turn, the British Pound’s year lows did good to the currency – amid rather stable external background investors gained interest in GBP. However this fact will not become an obstacle for “Bears” to resume selling in case the external background worsens.