Speaking about Great Britain’s strategic lines of development

Market Leader informed

In October one of the British citizens was lucky enough to win the “Euro million” lottery jackpot to the sum of 129 million euro. Now he is able to solve all his financial problems, which cannot be said about Great Britain as a whole.
The British government can only boast its 2nd strategic overview. The authors had a difficult task – to formulate the country’s development strategy while the government is trying to reduce the budget deficit.
The 3 main parts of the document explain the place of GB in the modern world and the most “harmonious” ways of surviving crises. The existing threats to the national security are also mentioned there.

The national strategy is:
• To consolidate GB’ ties with the fast-developing countries that are gradually becoming more significant in the international arena, including China, India, Russia and Brazil.
• To reduce the military costs by 7-8%, down to 1.7% of the national GDP, which is lower than the NATO standards (2%). According to the BBC, this will make other EU members of NATO reduce their military costs as well.

Besides, London has decided to change its priorities. Within the next 2 months the British parliament will be introduced with a bill implying the principle of sovereignty in the EU system of law and changing the order established by the European Communities Act 1972 (an Act of the Parliament of the United Kingdom providing for the incorporation of European Community law into the domestic law of the United Kingdom – Wikipedia), which will make it possible to cancel any decision within the framework of the EU’s common system of law.
London still can boast Moody’s highest credit rating with stable forecasts. However the risk of a decline in the rating may increase if the government fails to consolidate the budget and if the treasury-bond yield rises or there is another wave of the debt crisis.
The UK real estate market keeps showing the negative tendency. Over the last 12 months the prices has fallen 12.4%. The amount of the new homes for sale in September is the lowest in 6 months (26.000). The average price has decreased down to the level of January 2006. The only positive indicator is housing affordability, which has declined down to the minimal level registered in Feb 2004.

Tech analysis of GBPUSD rate.

The analysis of the GBPUSD market behavior indicates that the British Pound has overcome all the lines defending the downward H8 wave and keeps steadily forming the mid-term uptrend. Currently we are witnessing the formation of wave c (C ) of on H4.

The resistance levels for GBPUSD on its way to the top:
1.6106 - D1 FZR* + 150% «а(С)»Н4;
1.6051 - 88.2% - Н8 retracement wave + 162% «А»Н4;
1.6140 – 200% «А»Н4 + 176% «а(С)»Н4 + 118% «А»D3.

Significant support levels:
1.5874 – MF pivot
1.5759 – MF pivot
1.5728 – MF pivot
1.5650 – Н8 FZR

Experts from the Department of studying Masterforex-V trading system draw your attention to the fact that the upward H4 FZR, formed on Oct 28th, has gained support from the declining USD index, which has failed to settle above the important resistance level at 1.6904 an is currently forming a bearish a(C )/C of level H2 within the scope of an H8 wave.
If the USD index crosses the lower boundary of the flat at 1.6674 and keeps falling, GBPUSD will probably continue its uptrend and will try to update the high at 1.6106.

Despite the financial problems Great Britain keeps getting ready for the Olympic Games, discussing the possibility of hosting the FIFA World Cup 2018 and finding new sources of inspiration and faith. By the way, in October the Druid faith got the status of religion in GB.
However there are concerns over the following question: Will the UK government be able to allocate 46 billion pounds to pay the interest on its public debt in 2011?

The Department of the detailed studying of Masterforex-V TS offers the readers to share their opinion on the following matter:

Will the members of the UK government succeed in stabilizing the national economy in the short run?
• No, they won’t! The public debt is too big.
• Yes, they will! GB will reach the pre-crisis economic level, which will definitely have a positive impact on the British Pound currency rate.

The tech analysis is performed by the Department of studying Masterforex-V TS
Text: Natalia Kambur, an expert of the Department of studying Masterforex-V trading system

 

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