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At the Forex currency market the British Pound Sterling rate is growing steadily on Monday morning taking advantage of a lull at the market in order to regain some of the previous losses.

Forex forecast: MACD indicator for the pair GBP/USD started to grow moderately in the negative area, shaping a sell signal. Stochastic Oscillator continues to grow in the neutral zone, giving a similar signal.

Forex recommendations: in case of break down at the level of 1.5615, target for the purchase will be the levels of 1.54620 ? 1.5635.

On Monday morning macro-economic background for Great Britain is quiet; traders are guided by European news.

It became known earlier that retail price index BRC in the UK increased by 0.2% m/m (+2.7% y/y) in September. According to the estimates of the agency prices for food amounted to +0.1% m/m (+5.0% y/y) last month. As it became known earlier consumer confidence index Gfk in the UK rose to -30 points in September against -31 points in August. However, despite positive dynamics, index is still close to the historic lows and has not yet reached historical average.  The indicator has moved away from the bottom; however it is still too far from stability. Note that assessment indicator of general economic situation fell to -58 points over the last 12 months.

At the meeting of the Bank of England last week it was decided to leave interest rate unchanged at the level of 0.50% per annum, at the same time increasing volume of the assets repurchase program. QE was increased to 275 billion pounds against the previous level of 200 billion pounds. In the follow-up comments the head of the Bank of England Mervin King said that the expansion of the assets repurchase program was provoked by the slow growth of the global economy, however QE will have a positive impact on the British economy in the future.

According to him current measures are preventative because Britain is in the middle of the serious crisis at the moment. The Pound had become much weaker in response to the actions of the bank of England and has been trying now to regain some losses yesterday and today

Meanwhile, real estate sector is waking up from hibernation: house price index Hometrack in the UK declined by 0.1% m/m (-3.5% y/y) in September. Previous data showed that house price Rightmove in the UK increased by 0.7% m/m in September. Meanwhile, we can see the lack of offers as it is emphasized by Rithmove and upward pressure from the very low interest rates, which encourage the growth of the house prices; plus to this low level of public confidence to economy and reluctance of people to spend money, caused by obscure economic prospects.

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