Key Points
- The British Pound surged higher recently against the US Dollar, and broke the 1.2500 handle.
- The break above 1.2500 was crucial since it was a major resistance for the GBPUSD pair.
- Recently, the US Housing Price Index for Dec 2016 was released by the Federal Housing Finance Agency.
- The result was neutral, as there was an increase of 0.4% in the index in Dec 2016, less than the last revised +0.7%.
GBPUSD Technical Analysis
The British Pound made a nice upside move against the US Dollar once it settled above the 1.2450 resistance and the 21 hourly simple moving average. The GBPUSD has a bullish trend line on the hourly chart, which helped it moving past 1.2480.
The most important point is the fact that the pair was above to break a monster resistance area near 1.2500 and 1.2510.
It has opened the doors for more gains. The pair already traded as high as 1.2566 and currently consolidating gains for the next move higher.
US Housing Price Index
Recently in the US, the US Housing Price Index for Dec 2016 was released by the Federal Housing Finance Agency. It provides an estimated value of housing market conditions and was forecasted to increase by around 0.5% Dec 2016.
The outcome was neutral, as there was an increase of 0.4% in the index in Dec 2016, less than the last revised +0.7%. The report added that “House prices rose 6.2 percent from the fourth quarter of 2015 to the fourth quarter of 2016. FHFA’s seasonally adjusted monthly index for December was up 0.4 percent from November”.
Overall, the British Pound is trading with a positive bias, and there are high chances of it breaking the recent high of 1.2566 for a ride towards 1.2580 vs the US Dollar.
