The British housing market continues showing weakness in August. This is confirmed by the results of the survey conducted by Rightmove. According to the experts, the current weakness of the British housing market is mainly caused by higher demand coupled with lower housing prices in London. At this point, the average price of residential property has dropped down to 262 401 pounds. August's price drop is currently equal to 2,9%. This means that the bearish tendency started in July is still underway. It turns out that this month's drop is the biggest one seen by Rightmove.
Meanwhile, the residential property in London is losing value as well. At this point, the average housing price in the capital of Great Britain is 552 783 pounds. As opposed to July's prices, there is a 5,9% drop. Still, it is 10,3% higher than in August 2013.
GBPUSD: Property
The British Pound keeps o losing value against the US Dollar amid the mentioned housing stats, which indicate poor performance. GBPUSD is going down within the scope of a downswing represented by wave A/B of level Weekly. This is an elongated wave. On August 19th, the currency pair keeps going down within the scope of wave 5 or a new wave of the Hound of the Baskervilles» pattern by Elder/MF, Masterforex-V Academy reports.
A further downswing will give way to 1.6602, 1.6575/69, 1.6519/15. Alternatively, the price may suspend the downtrend if it breaks above 1.6737 and the top of the MF sloping channel .
