Key Points
- The British Pound after a decline towards the 137.75 level against the Japanese yen found support and recovered.
- There was a contracting triangle pattern formed on the hourly chart of GBPJPY, which was broken recently by the bulls.
- Today in the UK, the Rightmove House Price Index was released for the month of July 2016.
- The result was disappointing, as there was a decline of 0.9% in the index compared with the previous month.
Technical Analysis
The British Pound after a slide against the Japanese yen towards the 137.75 level found support to trade higher once again. The GBPJPY pair traded higher and during the upside move broke a contracting triangle pattern formed on the hourly chart.
However, the pair is currently struggling to clear the 21 hourly simple moving average, which is acting as a resistance.
On the downside, the 139.80 level can be considered as a support area for the buyers.
Rightmove House Price Index
Today in the UK, the Rightmove House Price Index, which provides a sample of residential property prices was released. The market was not expecting any decline in July 2016, compared with the last increase of 0.8%.
However, the result was different, as there was a decrease of 0.9% in July 2016, compared with the previous month.
The report stated that “Buyer demand in the two weeks since the surprise referendum result is consistent with 2014 although down on 2015 – Same period in 2015 benefitted substantially from post-election boost so enquiries this year are down 16% compared to that period. 2014 was not distorted by the election so is a better basis for comparison, and buyer enquiries are at the same level as the like-for-like two weeks in 2014”.
Overall, there is hardly anything for the British Pound buyers at this moment, but there is a chance of it trading higher in the near term.
