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At the Forex currency market the British Pound Sterling rate continues to decline for the fifth consecutive day.

Forex forecast: MACD indicator is in the positive area for the pair GBP/USD and it is going down, confirming a previous sell signal for the pair. Stochastic oscillator is coming out of the oversold zone today, continuing to give a pair sell signal.

Forex recommendations: in case of breakdown at the level of 1.6120 traders’ targets will be the levels of 1.6075 and 1.6030.

On Thursday, 10 March next meeting of the Bank of England will be held, where interest rate decision will be made - investors will be interested in the follow-up comments of the regulator. Meanwhile interest rate is kept at the level of 0.5% per annum.

Increase of VAT in the UK at the beginning of this year contributed to the growth of prices in British shops – the index rose to 24 month highs on annual basis in February. According to the estimates of BRC retailers’ prices rose by 2.7% y/y last month against the rise by 2.5% in January.

Thus, taking into account this factor as well, sooner or later the Bank of England will have to adopt measures aimed at reducing inflationary credibility.

It became known yesterday that according to the data from Royal Institute of Chartered Surveyors, house prices in the UK are becoming stable; prices balance increased to -26% in February against the previous value of -31%. At the same time prices balance still remains in the negative area, while house prices are at the highs of the summer last year.

The UK data released yesterday showed that balance of production volume in the manufacturing sector declined to 25 points in QI, as per EEF estimates, against the level of 33 points in QIV.

At the same time, balance of new orders in the manufacturing sector of the UK decreased to 20 points in QI against the previous level of 32 points.

The data released on Friday showed that house prices in the UK fell lower that lower than it had been expected in February: -0.9%, according to Halifax, against the growth by 0.8% in January. The prospect for the real estate market remains not the most positive: low employment along with the expectations of the interest rate increase does not contribute to consumer interest.

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