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The British Pound Sterling rate is traded downward at the Forex currency market on Wednesday.

Forex forecast: MACD indicator for the pair GBP/USD is traded upward in the negative area and is giving a buy signal, while volumes are minimal. Stochastic Oscillator is going down in the neutral zone and is giving an antipodal signal.

Forex recommendations: in case of breakdown at the level of 1.5640, target for buying will be the levels of 1.5630 and 1.5610.

Market in Great Britain was closed yesterday. Today investors are gradually resuming trades; however activity is likely to be low. It is doubtful that someone will be keen on entering into serious positions in the end of the year.

It became known this week that house prices Hometrack in the country fell by 0.2% m/m (+2.1% y/y) in December.

Great Britain still tries to keep away from European debt problems: yesterday, during discussions of ways to increase International Monetary Fund with the help of collective contributions, London stated that it would announce its decision at the beginning of 2012. Minutes of the last meeting of the Bank of England has been released this week: according to the document all members of the IFA (ratio 9-0) voted for maintaining interest rate at the current level. In addition, the Committee believes that changes in the program of assets purchases will not bring significant benefits; however, if inflation does not subside, the increase in the volume of the assets purchase program can be required. Sharp decrease of inflation is still expected in the first 6 months of 2012, the prospects of CPI in the next 6 months look more blurry.

It is also worth noting that the Bank of England expects stagnation in the economy in the next quarter and GDP growth in Q1 next year.

Revised GDP in the UK rose by 0.6% q/q (+0.5% y/y) in Q3, statistics released earlier   has supported buyers. The index is above preliminary assessment, which was appreciated in the market.

The Bank of England announced earlier that average inflationary expectations reduced by 4.1% in November against the level of 4.2% in August. At the same time, the level of two-year inflationary expectations was around 3.4% (3.5% previously).

According to the data released earlier CPI in Great Britain increased by 0.2% m/m (+4.8% y/y), as expected. Therefore, British inflation is slowing down its pace; however the index is still too far from the target level of the Bank of England.

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