GBP: The British Pound Sterling rate continues to be pressurized by a number of factors

The British Pound Sterling continues to be under the pressure from investors’ European fears. Nevertheless sales volume in the pair GBP/USD is not too big, which indicates the possibility of the Pound reversal trend.

Forex forecast: MACD indicator is in the negative area for the pair GBP/USD and it goes down, confirming a previous sell signal for the pair. Stochastic Oscillator is not giving a clear signal today, being in the oversold zone.

Forex recommendations: off the market.

Feasible event scenario at Forex: in case of breakdown at the level of 1.5575 the pair will go to 1.5610 and 1.5650. If the level of  1.5525 is exceeded, traders’ targets will become the levels of 1.5450 and 1.5400.

The UK GFK consumer confidence data released today showed that the index fell to the lows of four months in November to the level of -21 against the previous level of -19. While economists did not expect changes in the index, which seems to be impacted by the reduction of the British budget expenditures that is being implemented by the local monetary authorities currently.

It is possible that indicators will continue to be low – efforts to reduce public expenditures are in full swing in the UK at the moment.
It became known yesterday that the UK houses prices as per Hometrack, reduced by 0.8% on monthly basis (-1.1% y/y). The situation in the sector continues to be ambiguous. Earlier the LSL/Acadametrics estimations showed that houses prices in England and Wales went up by 0.3% in October, the rise is going on for the sixth consecutive month, increasing by 6.1% on annual basis; analytics in the real estate sector contradict one another: Halifax stated that houses prices in October increased by 1.8%, Nationwide insisted that the indicator fell by 0.7%.

Earlier Nationwide economists stressed that if the trend which had started in the early summer would continue in November and December, the prices would have a chance to drop by 1% by the end of the year. Rightmove clarified that they noticed the oddity in indicators in October; however they assumed that traders deliberately start overprice to hold the objects until better time.

Several major British monetary politicians expressed their attitude to the current state of economy and outlined their vision of the future. The head of the Bank of England Mervin King stressed that authorities do not take compulsory measures to decrease the rate of the Pound and they are interested in the steady economic recovery. He also stressed that export levels in the country began to rise and there is no need to revise inflation in the country yet.

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