Forex Blog
Blog-FX.Com

At the Forex currency market the British Pound Sterling rate is traded upward on Friday continuing ascending trend that has been lasting for nearly all week.

Forex forecast: MACD indicator for the pair GBP/USD is traded in the negative area, it has shifted to sideways from downward movement, volumes are decreasing, indicator does not give a clear signal. Stochastic Oscillator has come into overbought zone and is giving a buy signal.

Forex recommendations: in case of breakdown at 1.5495, the pair will go to 1.5510 and 1.5530. Profit taking is very likely to take place before the weekend.

Situation in the UK is stable in terms of macro-statistics.

Interest in risk maintain sascending channel for GBP; however it seems more like successful correction after mass sales in earlier in January.

Statistics released yesterday showed that consumer confidence Nationwide in the UK reduced to 38 points inDecember 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.

Meanwhile, unemployment continues to thrive in Britain. Unemployment rate rose to 8.4% in November against the forecast of 8.3%, the level of unemployed rate increased by 118 thousand for three months against +128 thousand for the previous three months, as perestimates.

Statistics released earlier showed that retail price index BRC in the UK increased by 1.7% m/m in December against the rise of 2.0% a month earlier. So, the index now fell to 16-monthlows, largely due to Christmas sales, when retailers reduced prices. Prices declined by 0.1% on monthly basis. According to the data released previously, house prices Rightmove in the UK dropped by 0.8% m/m (+0.4% y/y) in January. Research Group stated that asking prices fell three times this month; however interest to the British real estate sector is still preserved. Meanwhile, according to experts' estimate, situation in the sector remains "complex" in 2012, as unemployment rate is increasing and impact from European problem is not waning.

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.

Tags: