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GBP: British Pound directs downward

At the Forex currency market the British Pound Sterling rate is traded downward on Wednesday, following profit taking in all other pairs at Forex.

Forex forecast: MACD indicator is in the negative area for the pair GBP/USD and it is moving along the signal line, which prevents from forming a signal. Stochastic Oscillator has left overbought area today and is giving a pair sell signal.

Forex recommendations: if the current external background is maintained and in case of breakdown at the level of 1.5685, the pair will go to 1.5650 and 1.5620.

As it became known on Wednesday retail prices index in the UK increased by 0.1% m/m (+2.) % y/y). The BRC reports indicate that the index had risen due to the increase in food prices (+0.2% m/m). In October the index increased by 0.3% m/m (+2.2% y/y). We would remind that BRC announced another record yesterday according to which retail sales in the UK rose by 0.7% y/y in November.

The topic of last week was British housing market – the data released on Wednesday showed that real estate prices in the UK declined by 0.3% m/m (+0.4% y/y) in November as per Nationwide,  while the forecast of reduction was by 0.4% m/m.

It became known earlier 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%.

Note that the Bank of England meeting will be held this week; interest rate decision and comments on the current economic situation will be made at the meeting. Interest rate of the Bank of England is now at the level of 0.5% per annum and the next meeting of the regulator is scheduled for 9 December

Outset has been detected outset on the daily graph for the Pound – most likely current situation will be preserved until announcement of the meeting results by the regulator.
 

 

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