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The British Pound Sterling rate is traded downward at the Forex currency market.

Forex forecast: MACD indicator for the pair GBP/USD is traded upward in the negative area and is giving a buy signal, while volumes are minimal. Stochastic Oscillator is going down into oversold zone, maintaining a sell signal.

Forex recommendations: in case of breakdown at the level of 1.5410, target for sale will be the levels of 1.5390 and1.5370.

Thin market and lack of investors in the pre-New Year session provide basis for speculative movements.

According to the data released earlier CPI inGreat Britain increased by 0.2% m/m (+4.8% y/y), as expected. Therefore, British inflation is slowing down its pace; however the index is still too far from the target level of the Bank of England. 

It became known this week that house prices Hometrack in the country fell by 0.2% m/m (+2.1% y/y) in December.

Great Britain still tries to keep away from European debt problems: yesterday, during discussions of ways to increase International Monetary Fund with the help of collective contributions, London stated that it would announce its decision at the beginning of 2012. Minutes of the last meeting of the Bank of England has been released this week: according to the document all members of the IFA (ratio 9-0) voted for maintaining interest rate at the current level. In addition, the Committee believes thatchanges in the program of assets purchases will not bring significant benefits;however, if inflation does not subside, the increase in the volume of the assets purchase program can be required. Sharp decrease of inflation is still expected in the first 6 months of 2012, the prospects of CPI in the next 6 months are not very clear.

It is also worth noting that the Bank ofEngland expects stagnation in the economy in the next quarter and GDP growth inQ1 next year. Revised GDP in the UK rose by 0.6% q/q (+0.5% y/y) in Q3,statistics released earlier has supported buyers. The index is abovepreliminary assessment, which was appreciated in the market.

The Bank of England announced earlier that average inflationary expectations reduced by 4.1% in November against the levelof 4.2% in August. At the same time, the level of two-year inflation ary expectations was around 3.4% (3.5% previously).

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