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The British Pound Sterling is traded slightly upward at the Forex currency market on Monday morning.

Forex forecast: MACD indicator for the pair GBP/USD is traded upward in the negative area and is giving a buy signal, while volumes are average. Stochastic Oscillator is going down in the neutral zone and is giving an antipodal signal.

Forex recommendations: in case of breakdown at the level of 1.5625, target for buying will be the levels of 1.5640 and 1.5650. A chance of downward movement is high.

It became known today that UK house prices Hometrack fell by 0.2% m/m (+2.1% y/y) in December.

Activity in the pair is almost zero due to celebration of the Catholic Christmas.

Revised GDP in the UK rose by 0.6% q/q (+0.5% y/y) in Q3, statistics released earlier   has supported buyers. The index is above preliminary assessment, which was appreciated in the market.

It became known earlier that consumer confidence GFK/NOP in the UK declined to-33 points in December against the level of -31 points in November. Judging by small real expenditures and low income of households, the British are getting more conscious about spending. Index is still at 35-year lows and presently regarded as a negative indication.

The Bank of England announced earlier that average annual inflationary expectations reduced to 4.1% in November against 4.2% in August. At the same time, two-year inflationary expectations were at the level of 3.4% (3.5% previously).

According to the data released earlier, CPI in Great Britain increased by 0.2% m/m (+4.8% y/y), as expected. British inflation has slowed down its pace; however the index is still too far from the target level of the Bank of England.

Great Britain still tries to keep away from European debt problems: yesterday, during discussions of ways to increase International Monetary Fund with the help of collective contributions, London stated that it would announce its decision at the beginning of 2012. Minutes of the last meeting of the Bank of England has been released this week: according to the document all members of the IFA (ratio 9-0) voted for maintaining interest rate at the current level. In addition, the Committee believes that changes in the program of assets purchases will not bring significant benefits; however, if inflation does not subside, the increase in the volume of the assets purchase program can be required. Sharp decrease of inflation is still expected in the first 6 months of 2012, the prospects of CPI in the next 6 months look more blurry. It is also worth noting that the Bank of England expects stagnation in the economy in the next quarter and GDP growth in Q1 next year.

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