Rising property prices in UK, might take GBPUSD more up!
From 1.7190 to 1.656 is it the start of a bearish wave? a trend switch or a correction for the bullish trend of 2390 pips from 1.48 to 1.719. The market need a correction of 1200 pips down to reach 50% of the latest bullish wave, so we might be watching just a normal correction for more up moves to follow after.
House prices in UK still booming up and an increase of 35% by 2020 is expected as the population growth is suffering from lack of house building and the mortgage guarantee scheme is not easing the situation. Lot of confidence from banks lead to more confident homebuyers and the price push higher! Let’s learn from the last US real estate crisis and keep a close eye on GBPUSD bearish fall, might be the start of a bearish wave.
Unemployment Rate scored in red -0.10 for Jun 2014 showing that new home buyers already finding some difficulties and FTSE 100 Index fell -0.04 August 22 as a calm performance for the 100 most highly capitalized UK companies.
Both scenarios are now open for GBPUSD during the remaining days of this year. No important releases from UK for next week, GBPUSD might be on a weekly break.
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