GBPUSD: British Pound Seems to Be On a Path to 1.3000
The GBPUSD price is little changed today as investors react to the strong housing sector in the UK and the likelihood of a Brexit deal. The pair is up by just 0.10% and is trading at 1.2933, which is still above yesterday’s low of 1.2845.
The housing sector has been relatively strong in the UK recently. Just yesterday, data from Halifax, which is owned by Lloyds Bank, showed that house price index rose by 7.3% in September. That was a strong bounce that is also the biggest one in decades. In September, another data showed that the number of mortgage applicants rose by more than 70,000 as the amount lent rose to more than £3 billion.
Today, another data released by the surveyors institute showed that the house price balance rose by 61% in September. That was higher than the expected increase of 40% and the previous bounce of 44%. Still, we are concerned about whether the current strength will continue.
Meanwhile, the GBPUSD is tilting higher because of the likelihood of a Brexit deal. While the two sides have been showing strong differences in the past, analysts believe that this is creating a good recipe for a deal. Indeed, as shown below, 74% of gamblers believe that a deal will happen by the end of the year.
GBPUSD technical outlook
The four-hour chart below shows that the GBPUSD pair has been moving upwards recently. The pair has risen from yesterday’s low of 1.2848 to the current high of 1.2933. The price is also along the 25-day and 15-day exponential moving averages. Also, it is between the support and resistance level of 1.2683 and 1.3011. It is also higher than the ascending trendline that is shown in red.
Therefore, I suspect that the pair will continue rising, albeit slowly as bulls approach the resistance at 1.3010. On the flip side, a move below 1.2845 will see the price continue falling.