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GBPUSD – British Pound Remains In Downtrend Vs US Dollar

Key Points           

  • The British Pound struggled a lot recently against the US Dollar to trade below 1.2300.
  • There is a bearish trend line formed on the hourly chart of GBPUSD, which is acting as a resistance near 1.2270-80.
  • In the UK today, the Nationwide Housing Prices report was released.
  • The result was positive, as there was a rise of 0.8% in Dec 2016, compared with the previous month.

GBPUSD Technical Analysis

The British Pound made a downside move recently against the US Dollar to break the 1.2300 support area. The GBPUSD pair also traded below the 21 hourly simple moving average, and following a bearish trend line on the hourly chart, acting as a resistance near 1.2270-80.

GBPUSD Technical Analysis

The pair is currently finding resistance near the 21 hourly SMA and the 50% Fib retracement level of the last decline from the 1.2306 high to 1.2210 low.

As long as the pair is below the highlighted trend line resistance, there is a chance of further declines towards 1.2200.

UK Nationwide Housing Prices

Today in the UK, the Nationwide Housing Prices, which shows the value of the houses prices in UK and indicate current movements in the housing market that is considered as a sensitive factor to the UK’s economy was published.

The market was positioned for an increase of 0.2% in Dec 2016, compared with the previous month. However, the result was positive, as there was a rise of 0.8% in Dec 2016. In terms of the yearly change, there was a rise of 4.5% in Dec 2016, compared with Dec 2015. The report added that the “The story of UK house price growth in 2016 was one of relative stability. Annual house price growth ended 2016 at 4.5%, the same as the rate recorded in 2015”.

Overall, it looks like the GBPUSD pair remains at a risk of further declines if sellers keep preventing gains.

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