GBP/USD Forecast: Mixed UK employment data failed to underpin Pound
|GBP/USD Current price: 1.2563
- UK unemployment rate steady at 3.9% in the three months to April.
- Inflation in the UK seen growing at an annual rate of 0.5% in May.
- GBP/USD is holding within familiar levels, bullish potential fading.
The GBP/USD pair peaked this Tuesday at 1.2687, holding on to gains after the release of mixed UK employment data, to later fell amid renewed demand for the greenback. According to the Office for National Statistics, the ILO unemployment rate in the kingdom held at 3.9% in the three months to April, beating expectations of 4.5%. On a down note, the number of people claiming jobless benefits rose by 528.9K in May, worse than anticipated, while the April reading was upwardly revised to 1032.7K. The claimant count rate jumped to 7.8% vs. 5.8% previously.
This Wednesday, the UK will publish May inflation data. The Consumer Price Index is foreseen at 0% when compared to the previous month, while the annual reading is expected at 0.5%.
GBP/USD short-term technical outlook
The GBP/USD pair is trading near a daily low of 1.2552, with the bearish potential increasing as the day comes to an end. The 4-hour chart shows that the pair is crossing below a bearish 20 SMA, although still above the larger ones. Technical indicators, in the meantime, have entered negative ground, but lack strength enough to confirm a bearish continuation.
Support levels: 1.2525 1.2470 1.2410
Resistance levels: 1.2605 1.2650 1.2695
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.