Global macro overview for 10/01/2017:
The Halifax House Price Index released yesterday surprised market analysts. According to the UK's biggest lender, the House Price Index grew 1.7% to £222,484 month-over-month in December, beating the 0.3% increase forecast. Moreover, the index was better than November's upwardly revised gain of 0.6% as well. This was the fourth straight monthly increase and the largest gain since March 2016. On a yearly basis measured in the three month period ended December 2016, the house prices advanced 6.5% and the average house price increased by 4000 Pounds, the fastest increase since Brexit. In conclusion, the U.K. house market is not giving up and still keeps posting decent gains ahead of the Eurozone/United Kingdom negotiations.
Let's now take a look at the EUR/GBP technical picture in the daily time frame. The bulls have managed to break out above the golden trend line and above all of the moving averages, which might indicate they are back in control over this market. Moreover, the recent technical resistance at the level of 0.8705 was violated as well and now it will act as a support. The next resistnace is seen at the level of 0.8855.
