Dmitri Lysenko
The pessimistic sentiment among British investors got stronger in November. This is indicated by the stats published by GfK. The Bank of England says the risks are growing for the British economic recovery.
The November figures shown by the household sentiment index declined down to -12 during the reporting period after showing – 11 a month before. Economists had expected the index to show some growth but were disappointed by the actual figures. The sentiment is definitely lower than 12 months ago. The index has been declining for the second consecutive month. British households are less inclined to spend, especially when it comes to costly purchases. They are more worried about their savings and financial situation.
Still, some experts say that the overall sentiment concerning the economic prospects improved during the reporting period. Still, the recent surveys show that the UK consumer confidence may become the first wake-up call indicating a possible slowdown of the British economic recovery that is main supported by domestic consumption.
Meanwhile, the British Pound seems to be consolidating after a rally against the US Dollar. The currency pair doesn't seem to be able to decide on the direction of the forthcoming momentum. 1.6439 remains the key level or resistance. A break above it may give way to further highs, including 1.6479, 1.6510/18. The current bullish move will be completed as soon as the price overcomes the bottom of the MF sloping channel and consolidates below 1.6351 (as shown below). The chart below, courtesy of Masterforex-V Academy, reflects the current state of affairs in the market of GBPUSD:
Dmitri Lysenko
