Sterling Strengthens Ahead of U.k.’s Jobless Claim Results, 25+ PIP Volatility Likely; May 18, 2021
U.K. Claimant Count Change & Unemployment Rate
Today U.K. is going to release country’s Job data at 0600 GMT/1130 IST. It’s the first indication of the employment situation, released a month earlier than the Unemployment Rate. Although it’s generally viewed as a lagging indicator, the number of unemployed people is an important signal of overall economic health because consumer spending is highly correlated with labor-market conditions. Unemployment is also a major consideration for those steering the country’s monetary policy. If the actual data releases less than forecasted, it will be good for sterling.
Let’s see how GBP has reacted during the previous data release:
GBP/USD: The Sterling trades marginally higher ahead of U.K.’s Jobless Claims Results. The pair made intraday high at $1.4178 and low at $1.4125 mark. A day chart as well as H1 chart with triple EMA confirms bullish trend for the time being. A sustained close above $1.4190 on H1 chart will check key resistances. Alternatively, reversal from here will take the parity down below $1.4100 mark.
Key Resistances: $1.4202, $1.4240, $1.4272, $1.4298, $1.4320
Key Supports: $1.4125, $1.4086, $1.4050, $1.4022, $1.4001
Take a look and do trade wisely!