GBP/USD under pressure as UK housing market weakens sharply in February

GBP/USD faces downward pressure following a weaker-than-expected RICS house price balance reading of -12 for February, deteriorating from January's -10 and missing the consensus forecast of -9. The data signals an accelerating decline in UK property prices, with more surveyors reporting falling rather than rising prices. New buyer enquiries plunged to -26 from -15, marking the lowest level since December, indicating a significant pullback in housing demand. The weakness is attributed to heightened geopolitical tensions and rising energy prices, which have fueled concerns that the Bank of England may need to keep mortgage rates elevated for longer than anticipated. This housing data adds to the bearish case for sterling, as a cooling property market could weigh on consumer confidence and broader economic activity. Traders should monitor upcoming Bank of England commentary for signals on the interest rate trajectory. Near-term, GBP/USD may test lower support levels if additional UK macro data confirms the economic slowdown, while any dovish shift from the BoE could further weigh on the pound.