The amount of approved mortgage claims declined in September. At the same time, there was an increase in consumer lending amid lower business lending. According to the Bank of England, the amount of mortgage claims reached 61 267. The figures declined against August’s value of 64 054, simultaneously failing to match the expectations of 63 000.
Previously, Mark Carney, Governor of the BoE, stated that the rapid growth of the mortgage lending deficit shown by British households is directly caused by higher housing prices in the UK. At the same time, the Governor warned that the price hike seen right now presents a serious danger to steady economic recovery
The British housing prices grew by more than 10% on average while the same prices in London increased by 20% year-to-date. With that said, the latest figures show a housing price decline, Most probably, this is connected to the Bank of England’ demand for commercial banks to toughen credit requests, especially when it comes to mortgage loans.
All in all, the net consumer lending volume declined down to 2,7 billion pounds in September 2014 as opposed to 3.2 billion pounds seen over the previous reporting period.
GBPUSD Prospects
At the same time, according to Masterforex-V Academy, the Daily chart of GBPUSD indicates a recovery against the downtrend, which is still underway. The currency pair is still developing wave A/B of Daily.
The current move is of wave level H8 or higher, Masterforex-V Academy reports. After breaking the local high at 1.6183, the currency pair will show the start of a bullish wave – A/B of level Weekly. In this case, the most likely levels of resistance are 1.6257, 1.6302, 1.6374/76 as well as the MF pivot - 1.6413. A break below the 1.5874 low will give way to 1.5721, 1.5563.
