Mervin King, the Governor of the Bank of England, one again underlines the necessity of public spending reduction.
He is convinced that such a measure is one of the key conditions for the British economy to regain its balance. The UK economy has real chances to see stable and balanced recovery within the next few years, which is favored by the current weakness of the national currency and the stable budget consolidation in the mid-term perspective, Mr. King says.
The British government has already started the program aimed at reducing the public spending by £111B by 2015.
The British Pound currency rate has recovered from the recent low. According to the Department of studying Masterforex-V trading system , at this point GBPUSD is forming a bullish H4 wave, which will be completed once the 1.5851 support is broken. The next closest support is located at 1.5768, breaking below which GBPUSD will keep declining in the form of an H4 momentum. Otherwise the price will continue the bullish correction against the entire H8 wave from 1.6058.
News for Jan 27th (GMT):
11:00 GB - CBI Realized Sales
13:30 US - Durable Goods Orders, Unemployment Claims, Core Durable Goods Orders
15:00 US - Pending Home Sales
15:s0 US – Natural Gas Inventories
20:00 GB - Nationwide HPI
Support/Resistance levels:
1.6058 - FZR
1.6015 – MF pivot
1.5978 - 123.6% + 261.8% + MF sloping channel
1.5958 - 111.8% + 238.2% + 76.4%
1.5938 - FZR
1.5910 – the current price
1.5873 - 38.2%
1.5852 - 50% + MF pivot
1.5821 - 61.8%
1.5794 - 76.4% + MF sloping channel
1.5771 - 88.2% + MF pivot
1.5749 – FZR
