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GBPUSD – British Pound Back In Downtrend Vs US Dollar?

Key Points

  • The British Pound after remaining in an uptrend found sellers near 1.3269 against the US Dollar.
  • There was a break below a key bullish trend line with support at 1.3175 on the hourly chart of GBPUSD.
  • Today in the UK, the Halifax House Price Index for July 2017 was released by the HBOS.
  • The outcome was above the forecast, as there was a rise of 0.4% (MoM), more than the forecast of +0.2%.

GBPUSD Technical Analysis

The British Pound had an impressive run towards the 1.3270 level against the US Dollar, but later faced selling pressure. The GBPUSD pair traded lower, broke the 1.3100 support level and the 21 hourly simple moving average.

GBPUSD Technical Analysis

During the downside move, the pair broke a key bullish trend line with support at 1.3175 on the hourly chart, and traded towards the 1.3020-30 support area.

At the moment, the pair is correcting higher towards the 23.6% Fib retracement level of the last decline from the 1.3269 high to 1.3027 low at 1.3084 where it is likely to face hurdles in the near term.

UK’s Halifax House Price Index

Today in the UK, the Halifax House Price Index for July 2017 was released by the HBOS. The market was positioned for a minor rise of 0.2% compared with the previous month.

The actual result above the forecast, as there was an increase of 0.4%, which was also a lot more than the last revised decline of 0.9%. Looking at the 3mo/YoY change, there was a rise of 2.1%, more than the forecast of 2%. The report added that:

Prices in the three months to July were 2.1% higher than in the same three months a year earlier. This was lower than in June (2.6%) and is the lowest annual rate since April 2013 (2.0%). The annual rate has fallen from a peak of 10.0% in March 2016.

Overall, the GBPUSD pair may correct higher in the near term, but the upside remains capped by the 1.3100 level.

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