- British Pound slowly and steadily grinded higher against the US dollar, but finding sellers.
- There is a major bearish trend line formed on the hourly chart of the GBPUSD pair, which is acting as a resistance.
- In the UK, the Rightmove House Price Index posted an increase of 0.5% in January 2016, compared with the preceding month.
- In terms of the yearly change, the Rightmove House Price Index rose 6.5% in Jan 2016.
The GBPUSD pair after trading as low as 1.4252 found support and moved back higher. However, the upside was limited, as the pair failed near the 38.2% Fib retracement level of the last drop from the 1.4448 high to 1.4252 low.
There are a couple of bearish trend lines on the hourly chart, which are likely to act as a sell area if the pair continues to trade higher.
On the downside, an initial support can be seen near the 1.4250 area, which is the recent low.
UK Rightmove House Price Index
Today, the UK Rightmove House Price Index, which provides a sample of residential property prices in the UK and also seen as the strength of the UK housing market was reported. The market was not expecting any major increase in the index in Jan 2016, compared with the preceding month. However, the outcome was above the forecast, as the UK Rightmove House Price Index rose 0.5%.
In terms of the yearly change, the Rightmove House Price Index was a bit less than the last rise of 7.4%. It jumped 6.5% in Jan 2016, compared with the same month a year ago.
In short, as long as the pair is below the highlighted trend line and resistance area, it remains a sell.