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The British Pound Sterling rate is traded with minimal deviation at the Forex currency market on Friday, since sales taking place all day yesterday, have been smoothed over last night.

Forex forecast: MACD indicator remains in the positive area for the pair GBP/USD, it goes down and is ready to give a sell signal; volumes are decreasing. Stochastic Oscillator goes up in the neutral zone and is giving a buy signal.

Forex recommendations: off the market.

Feasible event scenario at Forex: in case of breakdown at 1.5810 the pair GBP/USD will go to 1.5820 and 1.5830. If sellers come back into the pair, target for decline will be the level of 1.5645.

The Pound has been making use of markets' sentiments now, while ignoring macro-economic background.

The data released on Tuesday was quite good: CPI decreased by 0.5% m/m (+3.6% y/y) in January against the level of +4.2% y/yin December. According to the data released at the end of last week, volume of production in the construction sector declined by 0.5% on quarterly basis(+0.9% y/y) in December against preliminary expectations of growth of 0.2%.Authorities have already reacted to this statistics, stating that the index cannot be the basis for revising country's GDP.

It became known yesterday that consumer confidence Nationwide increased to 47 points in January against the level of 38points in December. The report provides the following information: index of expenditure amounted to 78 points against previous 77 points; index of business expectations rose to 64 points versus 50 points earlier. Therefore, confidence of British consumers has recovered on the first month of the year from the record lows; nevertheless buyers are remain cautious, especially in regards to large acquisitions. At the regular meeting last week the bank of England increased asset repurchase program by 50 billion pounds, to the level of 325billion pounds, as expected. Mr. Osborn stated commenting this decision that the 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, current monetary policy is still the primary instrument of influence on economic changes. Analysis of the Bank of England proved efficiency of QE.

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