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Forex - GBP/USD rebounds from 3-week low, gains limited

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Forex Pros - The pound rebounded from a three-week low against the U.S. dollar on Monday as risk appetite strengthened, but gains were limited following a report showing a surprise drop in U.K. house prices in April.

GBP/USD clawed back up from 1.6344, the pair's lowest since April 20, to hit 1.6388 during early European trade, gaining 0.14%.

Cable was likely to find support at 1.6306, the low of April 20 and resistance at 1.6543, the high of May 5.

Earlier in the day, U.K. mortgage lender Halifax said house prices fell 1.4% last month, following no change in March. The result confounded expectations for a rise of 0.1% and left average prices in the three months to April 3.7% lower than a year earlier.

Martin Ellis, housing economist for Halifax said "Weak confidence amongst households, partly due to uncertainty over the economic outlook, is constraining housing demand and resulting in some downward movement in prices."

Meanwhile, the pound was down against the euro, with EUR/GBP climbing 0.52% to hit 0.8793.

Last week, the Bank of England left interest rates on hold at 0.5% amid concerns over the strength of the economic recovery in the U.K.

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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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