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At the Forex currency market the British Pound Sterling rate rises steadily this morning maintaining Friday’s trend.

Forex forecast: MACD indicator is in the positive area for the pair GBP/USD and declines aiming at crossing the signal line top-down, but the volumes are minimal. Stochastic Oscillator continues rising in neutral zone aiming at entering overbought zone.

Forex recommendations: in case of breakup at the level of 1.6170 buyers’ targets will be 1.6190 and 1.6220.

Note that one should be cautious in buying.

The Bank of England will hold a meeting on Thursday this week, but is likely to leave the benchmark interest rate unchanged. Currently the key rate remains at 0.50%.

Important macro-statistics released earlier showed that the level of GfK Consumer confidence in Great Britain remained at -28 points in March against the forecast of reduction to -29 points. Thus consumer confidence still doesn’t improve: the main restrictive factor in country’s budget. Apparently, market needs a positive driver.

As it became known last week, the level of 4q GDP in Great Britain was revised to -0.5% q/q (+1.5% y/y) against the forecast of revision to -0.6% q/q. The released data was strong, but the pair GBP/USD remained under pressure and didn’t respond to it.

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.

Chancellor of the Exchequer George Osborne sees two main risks for the British economy: inflation and eurozone economic crisis. According to his speech, one of the factors of faster inflation is weak Pound. However currency weakness is supportive for the economic balance – so the descending rate of GBP is rather advantageous for the British economy.

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