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At the Forex currency market the British Pound Sterling rate is traded slightly downward; it is still uncertain because of mixed external background.

Forex forecast: MACD indicator for the pair GBP/USD is traded in the negative area and is going up while volumes are low, giving a buy signal. Stochastic Oscillator tends to reverse in overbought zone and started to shape a sell signal.

Forex recommendations: off the market.

Feasible event scenario at Forex: in case of breakdown at 1.5590, the pair will go to 1.5600 and 1.5620. If external pessimism prevails, sellers' target will be the level of 1.5455.

According to the head of the Bank of England Mr. King, expected decline in inflation assumes possibility of additional QE; however rates will likely remain at the current levels. King emphasized that recovery of the British economy will be slow and jerky. He also said that terms of lending are detrimental for economic recovery.

At the same time the Bank of England is ready to provide liquidity to banks if a need will be.

Representative of the Bank of England Mr.Posen said earlier that he still adheres to "pigeon" attitude to monetary policy in the country. Thus he believes that inflation pressure is decreasing rapidly and economic growth is increasing, although in a slow pace. Decision on QE will be adopted at the meeting in February, now members of MPC are discussing possibility to increase volume of assets purchase. Posen stressed that this is not yet sufficient to stabilize situation in British economy.

Unemployment continues to thrive in Britain. According to estimates, unemployment rate rose to 8.4% in November against the forecast of 8.3%, level of unemployed increased by 118 thousand over three months against +128 thousand in three months before that.

Statistics released earlier showed that consumer confidence Nationwide in the UK reduced to 38 points in December against the level of 40 points in November. It seems that the latest data has smoothed over the rise achieved in November, although it has not been unexpected. The end of 2011 was not simple for the British consumers, which is reflected in statistics. It is worth noting that the Bank of England expects economic stagnation in Q4 2011 and GDP growth in Q1 2012. Revised GDP in the UK rose by 0.6% q/q (+0.5% y/y) in Q3.

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