Yuriy Ukazkin
According to Fitch Ratings, the UK is under the risk of losing its premium credit rating AAA. Great Britain may become one of the world’s big debtors, yielding only to the US among those countries that have (or used to have) the AAA rating.
The rating agency made such a conclusion after George Osborne’s recent speech, during which he forecast a considerable slowdown in the UK economic growth. The preliminary forecast was 1.7%, later it was revised and reduced to 0.9%. The forecast for 2012 was also revised and changed from 2.5% to 0.7%. Such a scenario will probably lead to new borrowings, thus increasing the country's sovereign debt.
The UK authorities are willing to keep pursuing their austerity policies, which is what Fitch would want.
In the meantime, GBPUSD keeps rallying. It has already completed wave A(C )/C inside the long-term upswing A/B. A break above the local high 1.5779 will start forming wave C(C ), with the closest targets located at 1.5795/98, 1.5839,1.5872/87, 1.5937. According to the Department of Masterforex-V Trading System , the downtrend will be resumed as soon as the price breaks below the MF pivot 1.5580 and the MF sloping channel (as shown below):
Yuriy Ukazkin
