UK house prices turn in to positive territory for the first time since March. Across the UK in aggregate, a net balance of 12 percent of respondents to the Royal Institution of Chartered Surveyors’ monthly survey reported an increase in house prices during July. This was a noticeable turnaround from minus 13 percent in June, as UK house prices rose in virtually all regions.

Simon Rubinsohn, RICS’s chief economist, said surveyors were more cautious about the outlook in the medium term with the economy expected to recover only slowly from its record second-quarter crash and finance minister Rishi Sunak’s property tax cut set to vanish in April.

“Significantly, some contributors are now even referencing the possibility of a boom followed by a bust,” he said.

“Policymakers must ensure that young people’s incomes are protected in the wake of the coronavirus crisis, and that their competitive advantage as first-time buyers is maintained when the stamp duty holiday comes to an end,” policy analyst Lindsay Judge said.

Talking about trade, Brexit jitters continue with fisheries and the level-playing field is the latest challenge. The negotiators will resume the sixth round in the next week. The US criticized the European Union (EU) over its inaction concerning the airbus case while adding some French and German goods to the tariff list and removing a few from the UK and Greece.

On the other hand, US Senators refrain from picking the pace on stimulus talks. Further, some diplomats from the Trump administration and US President Donald Trump criticized China while ordering a showcase of stealth bombers near Vietnam.

GBP/USD 4 Hour Chart:

Support: 1.3003 (S1), 1.29723 (S2), 1.2940 (S3).

Resistance: 1.3065 (R1), 1.3097 (R2), 1.3128 (R3).

UK House price creates a positive outlook for sterling against Dollar. We expect a bullish trend for Cable (GBP/USD).