GBP: the British Pound’s correction didn’t last long

At the Forex currency market the British Pound Sterling rate resumed moving downward on Wednesday – the correctional movement didn’t last long and was interrupted by spreading fear’s of world economy’s cooling.

Forex forecast: MACD indicator for the pair GBP/USD shows some growth in the negative area, giving a buy signal. Stochastic Oscillator continues falling in the neutral zone, giving a sell signal, ready to enter the oversold zone.

Forex recommendations: out of the market.

Feasible Forex scenario: in case of breakdown at the level of 1.5430, sellers’ target will be the levels of 1.5420 and 1.5410. If breakdown does not take place, the pair will consolidate close to the current levels.

As it became known today, BRC Retail prices index in Great Britain increased 0.2% m/m (+2.7% y/y) in September. According to the agency’s calculations, Food prices increased 0.1% m/m (+5.0% y/y) last month. As it became known earlier, 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 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. The data released the day before added another trait to the British housing sector picture: Hometrack House prices index in Great Britain declined by 0.1% m/m (-3.5% y/y) in September. The statistics released earlier showed that Nationwide house price index in Great Britain increased by 0.1% m/m (-0.3% y/y) in September. The previously released data indicated 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.