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At the Forex currency market the British Pound Sterling rate continues to grow today- for the fourth consecutive session, tending to retest highs of March, which had triggered a wave of sales last time.

Forex forecast: MACD indicator is in the positive area for the pair GBP/USD and started upward reversal, forming a pair buy signal. Stochastic Oscillator has come into the oversold zone today and maintains a pair buy signal. 

Forex recommendations: in case of breakdown at the level of 1.6325 buyers’ targets will be the level of 1.6345, a maximum since 2 March
However, it should be remembered that in case of deterioration of the external background, technical correction of the Pound Sterling will not take long to appear.

It became known yesterday that house prices in Great Britain increased by 0.8% m/m (+0.9% y/y) in March. Observation shows that different agencies have different methods of price estimating, which results in the essentially different data.

The data released last week showed that unemployment rate ILO in the UK increased to 8.0% in November- January, while the forecast was 7.9%. At the same time level of unemployed ILO rose by 27 thousand on quarterly basis.
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.

Levels of inflation in the UK have been above the levels indicated by the regulator for over a year already, increasing pressure on the recovery of the British economy which is not too steady. The 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.

Statistics released last Friday showed that level of consumer confidence in Great Britain declined to 38 points in February against the forecast of 47. Thus, the indicator has dropped to the record-breaking lows- for the British economy and for the Pound in particular, it is a not a good sign.

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