Technical Analysis: GBPUSD

The pound was capped and declined

On Tuesday, GBPUSD ended down 0.34% to 1.2485. High unemployment rate and continued strikes in Britain put pressure on the pound.

UK unemployment rate climbed

UK Unemployment Rate, m/m (April) increased from 3.9% to 4%, and UK Claimant Count (April) climbed from 28,200 to 46,700, the data from Office for National Statistics said on May 16.

Platelayer, airport staff and teacher groups went on strike recently. It hit the UK economy, putting pressure on the pound.

Biden was optimistic about the negotiation on debt ceiling

On Tuesday, the USDX was prone to fluctuation and climbed. It ended up 0.16% to 102.61. As Biden was optimistic about the negotiation on debt ceiling, the USDX jumped.

Technically speaking, the market trend is bearish in the short term

the chart of the day

On the chart of the day, GBPUSD remained high, was prone to fluctuation and fell. It is likely to retreat in the short term. In terms of technical indicators, KDJ went downwards after death cross occurred at high levels, demonstrating that the market trend is bearish. Investors should focus on whether GBPUSD will reach 1.234.

4-hour chart

On the 4-hour chart, GBPUSD was prone to fluctuation and fell. The market trend is bearish in the short term. In terms of technical indicators, Bollinger Band went downwards, demonstrating that the market trend is bearish. GBPUSD will fall further if it rebounds but is capped at 1.254.

Key resistance: 1.254, 1.258

Key support: 1.240, 1.234

Generally speaking, as the UK unemployment rate climbed, there is a risk that the pound will fall in the short term. Investors should focus on the speech by the BOE Governor during the day.