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The British Pound Sterling is traded downward at the Forexcurrency market on Friday, due to several factors. Market has already exhaustedthe Greek subject, it also matters that it is the end of the week now.

Forex forecast: MACD indicator for the pairGBP/USD has broken through the signal line from bottom to top and came into thepositive area; it is going up and is giving a buy signal. Stochastic Oscillatorgoes down in the neutral zone and is giving a sell signal.

Forex recommendations: in case of breakdownat 1.5770, the pair GBP/USD will go to 1.5760 and 1.5740.

A meeting of the Bank of England was heldyesterday: asset repurchase program was increased by 50 billion pounds, up to325 billion pounds, as expected.

Mr. Osborn said commenting this decision thatthe increase of QE will help achieve inflation target (official target is 2%and it has not been changed for about two years.) According to Osborn, currentmonetary policy is still the primary instrument of influence on economicchanges. Analysis of the Bank of England proved efficiency of QE.

According to MPC estimates, economic activityin the country went down slightly in Q4 2011, however recent studies showed apositive picture. MPC believe that volume of industrial output will graduallyincrease in 2012 and recovery in household income will help economic growth .

Another important factor is reduction of CPas it will boost demand. However, tough lending conditions and cost-savingmeasures can be an obstacle. Unemployment will restrain inflationary pressure.

QE program is planned for 3 months.

The head of the Bank of England Mr. Kingemphasized earlier that recovery of the British economy will be slow and jerky.He also said that terms of lending are detrimental to economic recovery. At thesame time the Bank of England is ready to provide liquidity to banks if a needwill be.

We would remind that complex situationpreserves in the labour sector. According to estimates, unemployment rate roseto 8.4% in November against the forecast of 8.3%, level of unemployed increasedby 118 thousand over three months against +128 thousand in the previous threemonths. Situation is similar in the retail sector as well.

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