GBPUSD – British Pound Under Pressure, Eyes 1.2320 Vs Dollar
- The British Pound traded lower against the US Dollar, and broke the 1.2400 support.
- The GBPUSD pair also broke a support trend line at 1.2395, which opened the doors for more declines in the near term.
- Today in the UK, Halifax House Price Index for Jan 2017 was released by the HBOS.
- The result was on the lower side, as there was a decline of 0.9% in Jan 2017, compared with the forecast of 0%.
GBPUSD Technical Analysis
The British Pound suffered heavy losses against the US Dollar recently, as it broke the 1.2450 and 1.2400 support levels. There was a downside move, breaking a support trend line at 1.2395 on the hourly chart of GBPUSD.
The pair is now below the 1.2380 level, and recently traded as low as 1.2339. It is currently attempting to recover, which might fail near the broken trend line and the 1.2380 resistance.
The pair may soon extend the decline and head lower towards the 1.2320 support. Any corrections from the current levels may be seen as selling opportunity.
UK Halifax House Price Index
Today during the London session, the UK Halifax House Price Index, which is the longest running monthly house price series presents house prices and property price movements was released by the HBOS. The market was expecting no change in Jan 2017, compared with the previous month.
However, the result on the lower side, as there was a decline of 0.9% in Jan 2017. Looking at the 3m/YoY reading, there was a rise of 2.4% in the prices, compared with the forecast of 6%. Commenting on the report, the Halifax housing economist, Martin Ellis, stated “House prices in the three months to January were 2.4% higher than in the previous quarter; marginally down on 2.5% in December. The annual rate of growth eased to 5.7% from December’s 6.5%, and is well below last March’s peak of 10.0%”.
Overall, there is nothing going for the British Pound, which means the GBPUSD may extend its decline towards 1.2320 or even 1.2300.
– Guest Post Submitted By Aayush Jindal from the FXTimes Team