On Wednesday, data on the UK Claimant Count change was better than expected, it fell 7.3K vs. estimates for a 3.1% drop. UK unemployment rate as measured by International Labour Organisation methods fell moderately from 7.9% to 7.8%.
Bank of England Governor Mervyn King stated a UK recovery is now “in sight” as he delivered his last speech before leaving the office. BoE officials predicted that growth may accelerate to 0.5% this quarter from 0.3% in the first quarter. The also raised projections for the next three years. King said that the more optimistic outlook on both economic growth and inflation was the first such improvement he has been able to forecast since the financial crisis struck. It is expected the unemployment rate will edge down moderately from the current level of 7.8%.
Today no new economic data on the UK is published. The European and US data is expected to be mixed. Today figures of Gross Domestic Product in Japan in Q1 in the second estimate was released, the figures were revised upwardly from 0.7% to 0.9%, on the annual basis the revised figures were down from 2.7% to 3.5%.
Technically, there are prerequisites for the correction. Yesterday there were registered the biggest volumes on the pound for the last 10 days, at the same time the price did not drop and sustainable growth was observed by the close of the US trading session. This is the sign of close of positions and the correction.
Thus, the main scenario is bullish. When the target 1.5263 is broken, the first target 1.5298, the high of April 23 opens. Then the next target is the range of 1.5320/32, the area of consolidation on the smaller time frames and the resistance of the trendline on the daily chart.
If the price consolidates under the testing level of 1.5206, the price may reach the yesterday’s low 1.5173 and when it is broken to test the targets 1.5157 and 1.5132.
The material has been provided by InstaForex Company – www.instaforex.com
On Wednesday, data on the UK Claimant Count change was better than expected, it fell 7.3K vs. estimates for a 3.1% drop. UK unemployment rate as measured by International Labour Organisation methods fell moderately from 7.9% to 7.8%.
Bank of England Governor Mervyn King stated a UK recovery is now “in sight” as he delivered his last speech before leaving the office. BoE officials predicted that growth may accelerate to 0.5% this quarter from 0.3% in the first quarter. The also raised projections for the next three years. King said that the more optimistic outlook on both economic growth and inflation was the first such improvement he has been able to forecast since the financial crisis struck. It is expected the unemployment rate will edge down moderately from the current level of 7.8%.
Today no new economic data on the UK is published. The European and US data is expected to be mixed. Today figures of Gross Domestic Product in Japan in Q1 in the second estimate was released, the figures were revised upwardly from 0.7% to 0.9%, on the annual basis the revised figures were down from 2.7% to 3.5%.
Technically, there are prerequisites for the correction. Yesterday there were registered the biggest volumes on the pound for the last 10 days, at the same time the price did not drop and sustainable growth was observed by the close of the US trading session. This is the sign of close of positions and the correction.
Thus, the main scenario is bullish. When the target 1.5263 is broken, the first target 1.5298, the high of April 23 opens. Then the next target is the range of 1.5320/32, the area of consolidation on the smaller time frames and the resistance of the trendline on the daily chart.
If the price consolidates under the testing level of 1.5206, the price may reach the yesterday’s low 1.5173 and when it is broken to test the targets 1.5157 and 1.5132.
The material has been provided by InstaForex Company – www.instaforex.com
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