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Market Analysis

Home » Featured » GBPUSD – Trend Overwhelmingly Negative

GBPUSD – Trend Overwhelmingly Negative

Posted by FXTimes in Featured - December 30th, 2015 10:28 am GMT

pound 14

Key Points

  • The British Pound decline continued against the US Dollar and the GBPUSD pair even traded below 1.4800 this week.
  • The pair is currently correcting higher, but it may face a lot of barriers on the way up.
  • More losses are likely in GBPUSD if sellers remain in control.
  • In the UK, the Nationwide Housing Prices were reported, and according to the report there was an increase of 0.8% in December 2015, more than the forecast of 0.5%.

Technical Analysis

The GBPUSD is currently trading higher with a slight bullish tone, but there are a couple of important bearish trend lines on the 4-hours chart, which may act as a barrier for more gains.

GBPUSD

If the pair trades closer to the highlighted trend line and resistance area, then buyers could struggle to break it.

On the downside, the 1.4800 support area holds the key. A daily close below it may be a call for a move towards 1.4700.

UK Nationwide Housing Prices

Today, the UK Nationwide Housing Prices, which shows the value of the houses prices in UK and indicate current movements in the housing market was reported. The forecast was slated for a rise of 0.5% in December 2015, compared with the preceding month. However, the outcome was better than the forecast, as the UK Nationwide Housing Prices increased by 0.8%.

In terms of the yearly change, there was an increase of 4.5% in December 2015, compared with the same month a year ago. The forecast was of a 3.8% rise. Commenting on the report and data, Nationwide’s Chief Economist, Robert Gardner, stated “After moderating during the first six months of 2015, house price growth remained in a narrow range between 3% and 4.5% in the second half of the year. This is broadly in line with earnings growth and close to the pace we would expect to prevail over the longer term”.

Overall, the report helped the GBPUSD pair to gain some ground, but the upside may be limited considering the amount of bearish pressure at present.

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