GBP/USD: House Prices Decline In The UK, Pound Trading Higher This Morning

GBP/USD: House Prices Decline In The UK, Pound Trading Higher This Morning

For the 24 hours to 23:00 GMT on Friday, GBP fell 0.16% against the USD and closed at 1.6012.

Over the weekend, the UK Chancellor of the Exchequer, George Osborne acknowledged that that it was taking longer than hoped to fix public finances and urged the public to have the courage to stay the course as austerity was the only option.

In the Asian session, at GMT0400, the pair is trading at 1.6040, with the GBP trading 0.17% higher from Friday’s close.

This morning, in the UK, according to the Hometrack housing survey house prices fell 0.1% (MoM) in November, compared to a similar drop recorded in the previous month. Meanwhile, the Lloyds business sentiment index for the UK stood at a reading of 17.0 in November, unchanged from the reading reported last month.

The pair is expected to find support at 1.5999, and a fall through could take it to the next support level of 1.5957. The pair is expected to find its first resistance at 1.6072, and a rise through could take it to the next resistance level of 1.6104.

Trading trends in the pair today are expected to be determined by the release of Markit manufacturing PMI in the UK.