The Great Britain pound recovered somewhat after it dropped on the speculation that the falling house prices signal about problems in Britain’s economy.

According to the Land Registry, the house prices declined 0.6 percent from October to November. The analysts predict that the home prices in the UK would drop about 2.5 percent in 2011 as the spending cuts discourage the buyers. The declining prices strengthen the concerns about the possible effect of the budge cuts on the UK economy.

The downward move may be exaggerated because of the thin trading volume during the holiday period. Still, the future of the Britain’s economy remains unclear at best.

GBP/USD traded at 1.5434 as of 03:38 GMT today after it dropped yesterday from 1.5497 to 1.5366. GBP/JPY traded at 125.79 after yesterday’s decline from 126.47 to 125.46.

If you have any questions, comments or opinions regarding the Great Britain Pound, feel free to post them using the commentary form below.