UK unemployment rate unexpectedly remained unchanged

The Office for National Statistics said Tuesday that the number of people seeking unemployment benefits increased by more than 1.5 million in the two months through May. However, there was a drop in jobless claims between April and May. The unemployment rate for the quarter to April unexpectedly remained unchanged at 3.9%.

On Thursday, the Bank of England may decide to strengthen its aid package for the British economy.

From a chartist’s point of view, the FTSE 100 has landed on a short term support at 5931 and is posting a rebound. However, the medium term technical picture remains challenging as prices are nearing a significant hurdle near 6700 (overlap). The 20-week simple moving average is still heading downward. Even though a continuation of the rebound cannot be ruled out, its extent should be limited. Readers may want to consider opening short positions below the key resistance at 6700. A break below 5931 would open a path to see 5400. Alternatively, a push above the key resistance at 6700 would reinstate a bullish bias with 7100 as the first target.

Source: GAIN Capital, TradingView

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