Global macro overview for 08/03/2017:
The UK Halifax Feb house price index surprised market participants by printing worse than expected figures. Market participants expected an increase to 0.4% from -1.1% last month, but the house price index edged up just 0.1%. Moreover, a three-month average was revised down to 5.1% from 5.7%, while investors expected a decrease only to the level of 5.3%. This data will add a little to the overall bearish sentiment on GBP pairs across the board.
Let's now take a look at the GBP/USD technical picture in the H4 time frame. The price has broken below the yesterday's support at the level of 1.2213 and it looks like it is heading towards the next support at the level of 1.2140 (78%Fibo). This scenario is valid as long as the price is trading inside of the dashed navy channel and the key resistance for bulls is at the level of 1.2303.
