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At the Forex currency market the British Pound Sterling rate continues moving upward on Thursday in spite of yesterday’s evening correction. The external background remains the main driver for the British Pound – Europe is awaiting problem-solving decisions.

Forex forecast: MACD indicator for the pair GBP/USD continues to go down in the negative area, giving a sell signal; volumes exceed average. Stochastic Oscillator is steadily rising in the neutral zone, giving a buy signal.

Forex recommendations: in case of breakup at the level of 1.5680, sales target will be the levels of 1.5690 and 1.5720. If breakup does not take place, the pair will consolidate close to the current levels. 

According to the data released today’s morning, Nationwide house price index in Great Britain increased by 0.1% m/m (-0.3% y/y) in September. The statistics released earlier showed that house prices Rightmove increased by 0.7% m/m in September. The data on the real estate sector from other leading agencies will be known soon, which will provide a clearer outlook. Meanwhile, we can see the lack of offers as it 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.

As noted by the regulator the day before, banks shouln’t reinforce market volatility. Besides banks’ capital saving shouldn’t limit lending.

According to the statistics mortgages are reviving in Great Britain: BBA Mortgage Approvals reached 35,226 k in August against the forecast of 33,250 k. The indicator jumped to 2010 highs. One should note that refinancing approvals totaled 27,114 k against 26,229 k before.

It became known earlier that retail sales in the UK fell by 0.2% m/m, in August; the index has not changed on annual basis. In addition, Mr. Cable said that program QE will enable economy to regain both consumer and business confidence if they press ahead with a program in the same volumes. The data released earlier was interesting: index of retail sales in the UK amounted to +0.6% m/m (+5.2% y/y), which agreed with expectations. In addition, consumer price index CPI rose by 0.6% m/m (+4.5% y/y) in August against the forecast of growth by 0.6% m/m.

In spite of the fact that it’s too early to talk of the about-turn, the British Pound’s year lows did good to the currency – amid rather stable external background investors gained interest in GBP.

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