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Forex - GBP/USD pares gains after weak U.K. house price report

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Forex Pros - The pound pared back gains against the U.S. dollar on Tuesday, pulling away from a four-day high after a report showing that U.K. house prices inched higher in May but fell at the fastest annual rate in one-and-a-half years.

GBP/USD pulled back from 1.6473, the pair's highest since June 1, to hit 1.6429 during European morning trade, still up 0.46% on the day.

Cable was likely to find support at 1.6304, the low of June 2 and resistance at 1.6546, the high of May 31 and a one-month high.

In a report, U.K. mortgage lender Halifax said house prices rose 0.1% on the month but fell 4.2% in the three months to May compared with a year ago, the biggest fall since October 2009.

Analysts had forecast a rise of 0.2% for an three-month annual decline of 4.1%, after April's 1.4% monthly fall and three-month decline of 3.7%.

Halifax economist Martin Ellis said the housing market was coming under pressure from low earnings growth, higher taxes, rising inflation and concerns about the outlook for jobs and growth.

Meanwhile, the pound was lower against the euro, with EUR/GBP rising 0.17% to hit 0.8927.

Later in the day, Federal Reserve Chairman Ben Bernanke was to speak. His comments would be closely watched for his views on the U.S. economic recovery.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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