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The British Pound Sterling rate is traded upward at the Forex currency market onMonday after the fall to local lows earlier.

Forex forecast: MACD indicator for the pairGBP/USD is traded in the negative area and is going down while volumes areaverage, and maintains a sell signal. Stochastic Oscillator continues to godown in the neutral zone and is giving a sell signal.

Forex recommendations: in case of breakdownat the level of 1.5420, targets for selling will be the levels of ??????? 1.5410 and1.5390. If downward breakdown does not take place, the pair will consolidate atthe current levels. As part of correction the pair can go to 1.5470.

British Prime Minister Mr. Cameron notedearlier that rebalancing of economy is well within expectations: 2012 promisesto be a real challenge for the major economies: although inflation in the UKwill go down this year.

It is also worth noting that the Bank of England expects stagnation in the economy in the next quarter and GDP growth inQ1 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. It became known earlier that CPI in Great Britain increased by 0.2% m/m (+4.8% y/y), asexpected. Therefore, British inflation is slowing down its pace; however the index is still too far from the target level for the Bank of England.

Meanwhile, PMI in the UK rose to 53.2 points in December against the level of 51.2 points in November.

According to the data released yesterday, PMI in the construction sector rose to 53.2 points against expectations of 52points. In addition it became known in the middle of the week that net consumerlending amounted to 0.394 billion pound in November against the forecast of 0.3 billion pounds. Number of approved mortgage applications in the same monthin creased to 52.854 thousand against the previous level of 52.786 thousand. It became the maximal level since December 2009.

The data released earlier showed that PMI CIPS in manufacturing sector increased to 49.6 points in December against 47.7points in November. The data is definitely positive; however the fact that theindex is below the level of 50 points proves that downward risks are still preserved. The Bank of England announced earlier that average inflationary expectations reduced to 4.1% in November against the level of 4.2% in August. At the same time, the level of two-year inflationary expectations was around3.4% (3.5% previously).

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