This week there was a recovery in the British Pound against the US Dollar. The GBPUSD pair managed to climb above the 1.4500 level, and even traded above the 1.4600 area. There were a couple of reasons, including the fact that the US Dollar traded down against most major currencies.
Today, there were a few main releases in the UK, including the BoE Interest Rate Decision, Bank of England Quarterly Inflation Report, Monetary Policy Summary and Halifax House Price Index. Most releases failed to help the GBPUSD pair to an extent, which means there is a possibility of it correcting down in the near term.
BoE Interest Rate Decision
Today, there were a couple of market moving events scheduled in the UK today, including the BoE Interest Rate Decision announced by the Bank of England. The market was not expecting any change in the interest rates, and the outcome was as forecasted. However, there was a forecast of BOE MPC Vote Hike to be 1. However, the report posted that there was no vote for a rate hike, which was a negative sentiment call for the British Pound.
Overall, there was a downside reaction in the GBPUSD pair after the release, and it looks like the pair may correct further moving ahead.
Halifax House Price Index
There was another release in the UK earlier today. The Halifax House Price Index (considered as the UK''s longest running monthly house price series presents house prices) was published by the HBOS. The forecast was slated for an increase of 0.3% in prices in Jan 2016, compared with Dec 2015.
However, the result exceeded the forecast, as there was an increase of 1.7% in prices in Jan 2016. When we consider the latest three months (November-January), then House prices were 2.2% higher than in the preceding three months. Moreover, the report added that Prices in the three months to January were 9.7% higher than in the same three months a year earlier.
Technically, the GBPUSD pair upside was stalled near 1.4660 area where sellers appeared to prevent gains, The pair started moving down, and it looks like the pair may head towards the 1.4500 support area in the short term.