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At the Forex currency market the British Pound Sterling rate declines on Thursday amid technical correction as well as on the threshold of today’s BOE meeting.

Forex forecast: MACD indicator is crossing the signal line for the pair GBP/USD, giving a mixed signal. Stochastic Oscillator is in the overbought zone today, maintaining a buy signal.

Forex recommendations: off the market.

Feasible event scenario at Forex: in case of breakup at the level of 1.6330 the pair will go to 1.6350 and 1.6370. If the level of 1.6280 is broken down, sellers’ targets will become 1.6260 and 1.6240.

The Bank of England will hold a meeting midday, during which the decision on the benchmark interest rate will be taken and economic perspectives – evaluated. Markets are confident with the interest rate to be kept unchanged at 0.50% per annum.

According to the Minutes of previous meeting of the Bank of England 6 members of MPC voted for keeping interest rate at the previous level. In addition, 8 people were for preserving current volume of the assets redemption program. Posen voted for the growth of QE by 50 billion pounds. Therefore, balance of forces in the Monetary Committee has remained unchanged, which frustrated bulls who expected indications of imbalance. Following the meeting of the Bank of England it became known that interest rate was kept at the previous level of 0.50% per annum, volume of debt securities was also left unchanged – 200 billion pound sterling.

According to the BCC survey released the day before, 1q GDP in Great Britain is expected to come out at the level of 0.6-0.7%. Besides 1q sales among manufacturers may reach the level of +8 points against 4q level of +24 points, orders may decline to +22 points against +19 points seen previously.

1q sales among service providers are expected to come out at the level of +6 points against 4q level of +5 points, orders may grow to +5 points from -7 points seen previously.

According to the data released the day before, BRC Retail price index in Great Britain increased by 2.4% y/y in March against the increase by 2.7% y/y in February.

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