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At the Forex currency market the British Pound Sterling rate remains under pressure from sellers on Thursday, although it makes attempts to recover.

Forex forecast: MACD indicator for the pair GBP/USD is traded in the negative area and is going down moderately, while volumes are average, and is giving a sell signal. Stochastic Oscillator had resumed its fall and went to oversold zone, maintaining a similar signal.

Forex recommendations: in case of breakdown at 1.5325 sellers' targets will be the levels of 1.5310 and 1.5280.

A meeting of the Bank of England will be held today and comments of the MPC members on inflationary situation in the country will be of special interest.

Yesterday's statistics showed that the UK retail price index BRC increased by 1.7% m/m in December against the rise of 2.0% a month earlier. Thus, the index fell to16-month lows, largely due to Christmas sales, when retailers reduced prices. Prices declined by 0.1% on monthly basis.

According to the data released today, house prices in the UK fell by 16% in December, as per RICS estimates. The Pound has neglected this statistics, concentrating on the external background.

The data released earlier showed that PMICIPS in manufacturing sector increased to 49.6 points in December against 47.7points in November. The data is definitely positive; however the fact that the index 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). Meanwhile, composite 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 earlier, PMI in the construction sector rose to 53.2 points against expectations of 52 points. In addition it became known in the middle of the week that net consumer lending amounted to 0.394 billion pound in November against the forecast of 0.3 billion pounds. Number of approved mortgage applications in the same month increased to 52.854 thousand against the previous level of 52.786 thousand. It became the maximal level since December2009.

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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