GBPUSD forecast bearish after report on UK house price declines
Technical Analysis Summary GBP/USD: Sell
| Indicator | Value | Signal |
| RSI | Neutral | |
| MACD | Sell | |
| Donchian Channel | Neutral | |
| MA(200) | Buy | |
| Fractals | Sell | |
| Parabolic SAR | Sell |
Chart Analysis
The GBPUSD technical analysis of the price chart on 1-hour timeframe shows GBPUSD: H1 is retreating to test the 200-period moving average MA(200) which is leveling off. We believe the bearish momentum will continue after the price breaches below the lower bound of the Donchian channel at 1.2159. A level below this can be used as an entry point for placing a pending order to sell. The stop loss can be placed above 1.2213. After placing the order, the stop loss is to be moved to the next fractal high, following Parabolic indicator signals. Thus, we are changing the expected profit/loss ratio to the breakeven point. If the price meets the stop loss level without reaching the order, we recommend cancelling the order: the market has undergone internal changes which were not taken into account.
Fundamental Analysis of -
Number of real estate surveyors that reported price decreases in UK in their areas rose in November. Will the GBPUSD retreat continue?
More real estate surveyors than forecast reported price decreases in UK in their areas: 25 per cent of respondents reported a decrease in UK house prices in November after 2% reported decreases in October according to RICS House Price Balance survey, when a 10% of respondents were expected to report declines. This is bearish for GBPUSD.