Key Points
- The British Pound recovered well after trading as low as 1.2075 against the US Dollar.
- The GBPUSD pair is currently trading higher, but facing sellers near a bearish trend line formed on the hourly chart at 1.2210-20.
- Today in the UK, the Mortgage Approvals was published by the British Bankers’ Association (BBA).
- The market was aligned for a reading of 37.300K in Sep 2016, but it came in at 38.252K.
GBPUSD Technical Analysis
The British pound declined heavily one it broke a support trend line at 1.2200 against the US dollar. There was a downside move towards 1.2080 where the buyers managed to protect the downside, and pushed the GBPUSD pair back up.
The pair is currently trading higher, but facing sellers near a bearish trend line formed on the hourly chart at 1.2210-20.
As long as the pair is below the trend line resistance, there is a chance of a downside move back towards the 1.2180 level.
UK Mortgage Approvals
Today in the UK, the Mortgage Approvals, which is a measure the number of home loans issued by the BBA during the previous quarter was published by the British Bankers’ Association (BBA).
The market was aligned for a reading of 37.300K in Sep 2016. However, the result was better than the forecast, as the Mortgage Approvals came in at 38.252K. Commenting on the report, the BBA Chief Economist, Dr Rebecca Harding, stated, “Consumer credit is growing at its fastest rate since December 2006, driven by strong demand for personal loans and credit cards. Consumers are increasingly using short-term borrowing to take advantage of record low interest rates. This trend has accelerated since the Bank of England cut rates in August”.
Overall, the report was positive, but it won’t be easy for the British Pound buyers to clear the highlighted trend line and resistance area.
