UK House Price Index Extends The String Of Worse Than Expected Data

Yesterday (Tuesday) UK Industrial and Manufacturing Production fell more than expected.  Also the NIESR GDP Estimate came out down 0.4% for the 12th straight decline.  Today the Halifax House Price Index fell by -0.5%.  The expectation was for a gain of 0.3%.

The weaker data has kept the GBPUSD pressured - although ranges are uninspiring the pair continues its move lower.

From a technical perspective, the price range has a low of 1.6045 and a high of 1.6139 - reached in the first hour of trading.  The price action can be categorized as consolidating so far today, but the price is lower than yesterdays close 1.6136.   The price is also lower than the previous low for the week at 1.6095 reached on Monday.  The 100 hour MA comes in at the 1.6253.  With the current price below the 100 hour moving average it gives a bearish bias from an intermediate perspective.  The other key level on the topside is the 1.6187 level which was the low price from the non trend range from June 10th up to the break lower this week.   A trendline from the July 1st highs comes in around that level as well - increasing the significance of the level.

The GBPUSD targets the 1.5846 level which is the 38.2% Fibonacci Retracement level of the last wave higher.  Although a ways away from current levels at 1.6071, as long as the price can remain key upside resistance (1.6187, 100 hour MA), the bias remains to the downside in the intermediate term.

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