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At the Forex currency market the British Pound Sterling makes languid attempts of correction still remaining under pressure. 

Forex forecast: MACD indicator is in the positive area for the pair GBP/USD and continues to decline, volumes are slowly going out, but a sell signal remains in force. Stochastic Oscillator is in the oversold zone, giving a similar signal.

Forex recommendations: off the market.

Feasible event scenario at Forex: in case of breakdown at the level of 1.6030 the pair will go to 1.6050 and 1.6070. If the level of 1.6000 is exceeded, the pair will have a chance to test 1.5980 and 1.5975/60.

No important data will be released in Britain today, and the pair will move in accordance with the general external background.
Last week gave two causes for the British Pound sharp selloff. Firstly, released statistics were weak and disappointed investors: retail sales excluding fuel in Great Britain fell by 1.0% m/m (+1.2% y/y) in February, level of retail sales fell by 0.8% m/m (+1.3%) y/y against the forecast of reduction by 0.6% m/m.

Secondly, according to the Minutes of meeting of the Bank of England 6 members of MPC voted for keeping interest rate at the previous level. In addition, 8 people were for preserving current volume of the assets redemption program. Posen voted for the growth of QE by 50 billion pounds.

Therefore, balance of forces in the Monetary Committee has remained unchanged, which frustrated bulls who expected indications of imbalance. Following the meeting of the Bank of England it became known that interest rate was kept at the previous level of 0.50% per annum, volume of debt securities was also left unchanged – 200 billion pound sterling.

The day before Spencer Dale of Bank of England said he would be ready to reverse his decision on the key interest rate in case the inflationary pressure in the country continued to ease. He voted to raise the key rate this month guided by the inflation indicators.
Thereby both fundamentals and the general external background continue to put pressure on the British Pound.

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