Forex - GBP/USD edges lower, retreating from 7-week high

Published 09/27/2010, 05:14 AM
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Investing.com – The pound edged lower against the U.S. dollar on Monday, retreating from a 7-week high, while sluggish U.K. housing data failed to have a significant impact on the market.

GBP/USD hit 1.5788 during European morning trade, a daily low; the pair subsequently consolidated at 1.5791, shedding 0.21%.

Cable was likely to find support at 1.5641, Friday's low and resistance at 1.5907, the high of August 10.

Earlier in the day, data from property firm Hometrack showed that U.K. house prices dropped by the most in 18 months in September as all of Britain’s regions posted price declines.

The report said the average cost of a home fell 0.4% in September to GBP 157,600. It was the third consecutive monthly drop and the biggest since March 2009. Housing demand fell the most since January 2009.

Commenting on the report, Richard Donnell, Hometrack’s director of research, said that September’s price drops were “part of an ongoing re-pricing process which began six months ago in early spring, and which is set to stretch well into 2011”.

Meanwhile, the pound was up against the euro, with EUR/GBP shedding 0.19% to hit 0.8510.

Also Monday, the U.K. Confederation of Business Industry said that profitability in the country's banking sector had increased for the fifth quarter in a row, with growth in the sector in the past three months the fastest since June 2007.

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