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At the Forex currency market the British Pound Sterling rate is traded downward on Wednesday- situation at the financial markets is still too tense to take risk.

Forex forecast: MACD indicator for the pair GBP/USD remains in the positive area, however it started upward reversal and is ready to give a buy signal. Stochastic Oscillator is moving along the signal line in the neutral zone, not giving a clear signal.

Forex recommendations: in case of break down at the level of 1.6280, the pair will go to 1.6270 and 1.62501. If downward breakdown does not take place, the pair will consolidate at the current levels.

Rating agency S&P said yesterday that rating downgrade does not threaten Great Britain.

Yesterday, Prime Minister Cameron called for Parliament to cut short vocation in order to proceed to work this Thursday, mainly because of the escalating situation in the country. This is a precedent. Parliament had been summoned from vocation only twice in the last decade in 2001, when there was a terrorist attack in the U.S. and in 2002 when Britain joined military campaign against Iraq.

It also became known last week, that index of PMI CIPS in the UK construction sector increased to 53.6 points in July against the forecast of 53.0 points. In June, CPI in the UK fell by 0.1% m/m (4.2% y/y) against the forecast of growth by 0.2% m/m.

Earlier, Confederation of British Industry, CBI has reduced GDP forecast for the current year to 1.3% against the forecast of 1.7% in May. According to experts, sovereign crisis in Europe, debt problems in the U.S. and Japanese disasters will not enable British economy to strengthen considerably. Meanwhile, preliminary GDP in the UK increased by 0.2% on quarterly basis (+0.7% y/y) in Q2.

The meeting of the Bank of England was as usual brief and concise: the rate was left at the level of 0.50% per annum, package of public bonds redemption was also left unchanged, in the amount of 200 billion pounds.

No special comments have been made: British regulator continues to adhere to the old monetary policy.

According to Finance Minister Osborne, Great Britain continues to hold a status of a quiet habour, because national authorities are taking tough measures on fiscal policy. He believes that the country shall continue to adhere to consolidation plan to get rid of debts; meanwhile the Britain is able to keep away from recession. Rejection from the fiscal plan at the moment will become a real threat to economic growth, thinks Osborne. 
 
Current situation in the market does not facilitate full recovery of the Pound.

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