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At the Forex currency market the British Pound Sterling rate is traded downward on Wednesday morning; the same pattern has been going on for several sessions: the GDP would decrease at the beginning of the trading session and later it would regain from losses and start to increase. 
 
Forex forecast: MACD indicator for the pair GBP/USD remains in the positive area is moving along the signal line,   not giving a clear signal. Stochastic Oscillator goes up in the neutral zone, and is giving a buy signal.

Forex recommendations: in case of break down at the level of 1.6240, the pair will go to 1.6260 and 1.62901. If upward breakdown does not take place, the pair will consolidate close to the current levels.

It became known this week that inflation in the UK remains unchanged on monthly basis in July (+4.4% y/y) against growth of 4.2% y/y in June. Inflationary pressure is growing and for the fragile British economy it is not the best moment.

Retail price index in the country deduced by 0.2% m/m (+5.0% y/y) in July; in June the indicator had demonstrated the same +5.0% y/y.

As it o became known earlier, index of PMI CIPS in the UK construction sector increased to 53.6 points in July against the forecast of 53.0 points. In June, CPI in the UK fell by 0.1% m/m (4.2% y/y) against the forecast of growth by 0.2% m/m. Earlier Confederation of British Industry- CBI has reduced GDP forecast for the current year to 1.3% against the forecast of 1.7% in May. According to experts, sovereign crisis in Europe, debt problems in the U.S. and Japanese disasters will not enable British economy to strengthen considerably. Meanwhile, preliminary GDP in the UK increased by 0.2% on quarterly basis (+0.7% y/y) in Q2. In addition, house prices in the UK fell by 2.1% m/m (-0.3% y/y) in August, as per Rightmove estimates.

British monetary politician Mr. Osborn said yesterday that collapse of the Eurozone would be economic disaster for both Europe and Great Britain. He said that the UK strictly implements the plan to reduce budget deficit; however the world politicians should act be more effective and vigorous to prevent imbalance. We would remind that rating agency S&P said last week that rating downgrade is not a threat for Great Britain.
The head of the Bank of England Mr. King noted this week commenting inflationary indices that, CPI can easily reach 5% and MPC can use interest rate or QE to control risks, is required.

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