- British Pound is recovering well against the US Dollar and forming an ascending channel pattern.
- GBPUSD is currently facing selling pressure, as there was a failure noted around the channel resistance.
- A minor slide is possible in the short term if sellers remain in control. <br>
- In the UK, the Rightmove House Price Index was reported, which posted a decline of 1.1% in December 2015.
The GBPUSD recovered well after trading below the 1.60 support area. There is an ascending channel pattern formed on the 4-hours chart, which is acting as a catalyst for an upside move. Recently, the pair traded close to the channel resistance area and failed to break it.
The pair is now moving lower, and settled below the 200 simple moving average (4H). It looks like the pair may spike down and test the channel support area.
On the downside, the 100 and 50 MA (4H) may also act as a support on the way down.
UK Rightmove House Price Index
Today, the UK Rightmove House Price Index providing a sample of residential property prices was reported. The forecast was slated for a decline in December 2015, compared with the preceding month. The outcome was mixed, as there was a decrease of 1.1%, but less than the last decline of 1.3%.
Looking at the yearly change, UK Rightmove House Price Index rose 7.4% in December 2015, compared with the same month a year ago. The report stated that “Buyer enquiries to agents since beginning of October this year up 37% and number of properties coming to market down 5% compared to the same period in 2014”.
There was a downside reaction in the GBPUSD after the release, and buyers failed to gain momentum. Let us see whether the channel support area can be tested again or not moving ahead.