Key Points
- The British Pound surged higher and traded above the 1.3320 level against the US Dollar before correcting lower.
- There was a break below an ascending channel with support at 1.3305 on the hourly chart of GBPUSD.
- Recently in the UK, the RICS Housing Price Balance survey for August 2017 was released by the Royal Institution of Chartered Surveyors.
- The outcome was above the forecast of 0%, as there was a rise of 6% in the Balance.
GBPUSD Technical Analysis
The British Pound climbed higher this week and broke the 1.3200 sell wall and 1.3280 resistance against the US Dollar. The GBPUSD pair traded towards 1.3335 before facing sellers and starting a downside correction in the short term.
The pair corrected below the 50% Fib retracement level of the last wave from the 1.3162 low to 1.3332 high and the 21 hourly simple moving average. It even broke the 1.3220 support and testing the 76.4% Fib retracement level of the last wave from the 1.3162 low to 1.3332 high.
It seems like the pair might continue to move lower and could even test the 1.3160 swing low and a major support zone in the near term before finding buyers.
UK’s RICS Housing Price Balance
Today in the UK, the RICS Housing Price Balance survey for August 2017 was released by the Royal Institution of Chartered Surveyors. The market was positioned for no change in the balance, compared with the last increase of 1%.
The actual result was above the forecast of 0%, as there was a rise of 6% in the Balance. The report added that:
In central London the reading is stuck firmly in negative territory, with 56% more respondents seeing a fall in prices, posting the weakest result since 2008.
Overall, the GBPUSD pair might continue to correct lower towards the next important support at 1.3160.
