Key Points
- The British Pound is eyeing further gains above the 1.3250 level against the US Dollar.
- There is a bullish trend line forming with support at 1.3280 on the hourly chart of GBPUSD.
- Today in the UK, the Rightmove House Price Index for Oct 2017 was released.
- The outcome was above the forecast of 0.5% as there was a rise of 1.1% in the index (MoM).
GBPUSD Technical Analysis
The British Pound made a decent upside move towards 1.3250 against the US Dollar. The upside move was such that the GBPUSD pair even managed to break the 1.3280 level and the settled above the 21 hourly simple moving average.
The upside move was protected by a resistance trend line at 1.3325. At the moment, the pair is testing the 23.6% Fib retracement level of the last wave from the 1.3125 low to 1.3341 high.
On the downside, there is a bullish trend line forming with support at 1.3280 on the hourly chart of GBPUSD. As long as the pair is above 1.3250, it would continue to move higher towards 1.3340 or 1.3360.
Rightmove House Price Index
Recently in the UK, the Rightmove House Price Index for Oct 2017 was released. The market was positioned for the House Price Index to increase by 1% compared with the same month a year ago.
The actual result was above the forecast of 1% as there was a rise of 1.4% in the index. In terms of the monthly change, the forecast was slated for a 0.5% rise, but there was an increase of 1.1%. The report added that:
Price of property coming to market falls by 1.2% (-£3,660) this month, the first monthly fall at this time of year since 2013. National average price fall exacerbated by London continuing to readjust and smaller falls in the other southern regions.
Overall, the GBPUSD pair might continue to trade higher towards 1.3340 in the near term.
