- British Pound declined heavily against the US Dollar, and traded as low as 1.5055.
- The GBPUSD pair is currently making an attempt to recover the ground, but may face a lot of hurdles on the way up.
- UK Mortgage Approvals published by the British Bankers’ Association (BBA) posted a reading of 45.437K in October 2015, which was lower than the forecast of 45.500K
- There is a monster resistance around 1.5100 in GBPUSD that may act as a catalyst for the next move.
The GBPUSD pair dived recently close to the 1.5050 support area where there was some buying interest. The pair is currently recovering, and finding resistance near a bearish trend line formed on the hourly chart.
A break above the trend line and resistance area may improve the buying sentiment for the pair, and could take it higher towards the 38.2% Fib retracement level of the last fall from the 1.5313 high to 1.5055 low.
On the downside, the last swing low of 1.5050 remains a key area and must hold for the upside move.
UK Mortgage Approvals
Today, the UK Mortgage Approvals, which measures the number of home loans issued by the BBA during the previous quarter was published by the British Bankers’ Association (BBA). The forecast was slated for 45.500K in October 2015, but the outcome was lower than the forecast as it came in at 45.437K. The result was not too disappointing, as the current reading was better compared with the last revised reading of 44.825K.
The report stated that “These statistics show that housing market activity remained strong in October, with gross mortgage borrowing 26 per cent higher than a year ago and at its highest level for seven years”.
Overall, the outcome was improved, and helping GBPUSD. The main thing is whether it can break the trend line and resistance area or not.