GBP/USD Remains In Correction
Masterforex-V | Mar 21, 2014 07:30AM ET
The UK housing market continued to show growth, indicate independent reports of the Bank of England and Nationwide. Discussions on the formation of "price bubble" in the real estate market again received support, but the Bank of England estimates such risks as minimal.
According to the report Nationwide, house price growth continued to the 14th consecutive month, showing the maximum growth rate since 2007. In February the index prices, calculated agency on a monthly basis of comparison was 0.6 %. At the same time on an annual basis of comparison the index reached 9.4 %, becoming the highest since May 2010. Meaning of the average price of residential property reached 177,846 pounds.
h2 British housing market growth occurs with the support of government programs and the availability of mortgage lending./h2British housing market growth occurs with the support of government programs and the availability of mortgage lending, binary options broker Optionova says. "An essential factor is the lowest rate of interest rates and strengthening consumer confidence, which is supported by substantial employment growth observed in the last quarter," - told the expert. Thus it is necessary to consider the fact that the low level of interest rates both in the UK and abroad provoked redistribution of investment resources among different asset classes, including real estate in favor of the British. There are risks that the upward trend in housing prices may weaken over time, noted in Optionova.
The pound continues forming correction to long-term trend to strengthen. Today, on the 6th of March, 2014, the pair GBP/USD completed the formation of a "bullish" wave A / B level H4. Further strengthening of the couple with the breakdown of local maximum 1.6751 will start rising wave, and probable (C) / C level H8, note experts of Optionova. Resistance will be maximums 1.6768 and 1.6822, and Fibonacci levels 1.6794/98. The pair will continue the formation of the descending wave A / B with the potential H4 after it has broken minimum at 1.6685. Supports will be MF sloping channel and pivot MF 1.6661, the breach of which will result in a "bear" wave A / B of the senior timeframe.
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