Home GBP/USD Recovery Halts on Falling House Prices in Britain
Forex News Today: Daily Trading News

GBP/USD Recovery Halts on Falling House Prices in Britain

Britain’s  Halifax HPI, a wide measure of house prices, disappointed with a significant drop of 1.2% in August. A rise of 0.5% was expected, after last month’s 0.2% rise (revised downwards from +0.3%).

GBP/USD that already managed to recover and rise above 1.60, is now retreating.

This house price index is one of the widest and most accurate one out there. The data is based on the internal mortgage figures available to HBOS, which is one of Britain’s largest banks.

It’s important to note that some of the recent months were quite volatile. In June, a rise of 1.5%, and April saw a decline of 1.4%.

GBP/USD had a bad start to the week, starting off with a gap lower. After the 1.6110 line was lost, it dropped further, lost the round number of 1.60 and found support only above 1.5910.

One of the reasons for the fall was that  Britain’s services sector’s growth weakened  more than expected. All in all, the economy is quite sluggish in the UK.

Prior to the release, it managed to rise and cross the 1.60 line. This figure, reflecting the weakness of the housing sector, sends is back down.

Minor support is found at 1.5940, followed by 1.5910 and 1.5820. Resistance is at 1.60, with 1.6110 being more important.

For more on on the pound, see the GBP/USD forecast.

Later today, British  Manufacturing Production will also shake the pair. A small rise of 0.1% is expected, following last month’s drop of 0.4%.

 

Yohay Elam

Yohay Elam

Yohay Elam: Founder, Writer and Editor I have been into forex trading for over 5 years, and I share the experience that I have and the knowledge that I've accumulated. After taking a short course about forex. Like many forex traders, I've earned a significant share of my knowledge the hard way. Macroeconomics, the impact of news on the ever-moving currency markets and trading psychology have always fascinated me. Before founding Forex Crunch, I've worked as a programmer in various hi-tech companies. I have a B. Sc. in Computer Science from Ben Gurion University. Given this background, forex software has a relatively bigger share in the posts.