Global macro overview for 08/02/2017:
The first time since the Brexit, the home prices in the UK has declined more than expected. According to Halifax House Price Index, the longest running monthly house price measure in the UK, the house prices declined 0.9% in January, following the preceding month's downwardly revised increase of 1.6%, while market analysts expected house prices to grow at a 0.2% pace in the reported month. On an annual basis, prices climbed 5.7% last month, down from December's 6.5% and below economists' forecasts. The main reason for this plunge was attributed to subdued economic growth and rising pressure on consumer spending. Nevertheless, the lack of properties for sale and slow building activity would push the prices yet up again in the coming months.
Let's now take a look at the GBP/USD technical picture at the H4 time frame. The bulls have managed to push the price higher towards the weekly pivot at the level of 1.2522, but the price was capped there. After the impressive gains from last week, the market is trying to re-gain the upward momentum and continue the rally. The slow stochastic oscillator is bouncing from the oversold levels, so there is still a good chance the price will break out higher soon. The next resistance is seen at the level of 1.2545 and 1.2729.
