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At the Forex currency market on Wednesday the British Pound Sterling rate keeps on ascending trend which started last night. This week correction is quite significant from the over sold levels; however it isun likely that it will last after this Friday.

Forex forecast: MACD indicator for the pair GBP/USD is traded in the negative area and is moving along the signal line, not giving a clear signal. Stochastic Oscillator is growing in the neutral zone and is giving a weak buy signal.

Forex recommendations: in case of breakdown at the level of 1.5670, target for buying will be the levels of1.5680 and 1.5700. Meanwhile, buying is a part of correction.

It became known today that consumer confidence GFK/NOP in the UK declined to-33 points in December again stthe level of -31 points in November. Judging by small real expenditures and lowin come of house holds, the British are getting more conscious about spending.Index is still at 35-year lows and it is a negative indication.

Great Britain is still trying tokeep away from European debt problems: yesterday, during discussions of ways toincrease 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 will be released this weekand it will be interesting to know comments of the members of the MPC about prospects of inflation in the country.

The Bank of England announced earlier that average annual inflationary expectations reduced to 4.1% inNovember against 4.2% in August. At the same time, two-year inflation ary expectations were at the level of 3.4% (3.5% previously).

According to Markit estimates,PMI CIPS amounted to 52.3 points in November against 53.9 points earlier;however dynamics in the sector of new houses is positive and upward trend inthe sector can be interpreted as an indication of the future stabilization. Ingeneral, the latest data from Markit looks good and does not rule out prompt recovery of the economic sectors in the future. It became known earlier thatCPI in the UK increased by 0.2% m/m (+4.8% y/y) in November, as expected.British inflation slows down its pace, however the index is still too far fromthe target level of the Bank of England. The data released earlier showed thatretail sales BRC in the similar trading floors of the UK fell by 1.6% y/y inNovember against the forecast of -0.5%. It was the lowest level of the indexsince May this year. Activity in the British construction sector declined in November,which was demonstrated by statistics released at the end last week.

House price index Rightmove inthe UK fell by 2.7% m/m (+1.5% y/y) in December against preliminary level of-3.1% m/m (+1.2% y/y). Looking at the past performance of the index we can say that in the first 6 months of the year, house prices went up, however in thenext six months volatility in the sector increased and the rise in October was smoothed over by the decline in November. In 2011 British housing sector distinguished by both record low rates and tougher mortgage conditions.

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