- The British Pound after a nasty rise towards 1.2900 against the US Dollar found resistance.
- The GBPUSD pair started correcting lower, and currently trading in a range with support near 1.2770.
- Today, the US Initial Jobless Claims for the week ending April 15 released by the US Department of Labor posted a rise from 234K to 244K.
GBPUSD Technical Analysis
The British Pound rocketed higher this past week, and the main reason was UK Prime Minister Theresa May’s announcement of plans to call a snap general election on 8 June.
It ignited a rally in GBPUSD, as the pair moved higher by roughly 320 pips. The pair traded from the 1.2511 low to 1.2901 high. Later, it faced sellers near 1.2900, and started correcting lower.
GBPUSD Hourly Chart
There is already a move below the 23.6% Fib retracement level of the last wave from the 1.2511 low to 1.2901 high. At the moment, there is a range pattern formed on the hourly chart with support near 1.2770.
On the upside, the range resistance is near 1.2850. It looks like a contracting triangle pattern, which may sooner or later pave the way for the next move. If there is a dip, the next support is around the 38.2% Fib retracement level of the last wave from the 1.2511 low to 1.2901 high at 1.2752.
The hourly RSI is at 52, and starting to move north
Fundamentals – US Initial Jobless Claims
Recently, the US saw the release of the Initial Jobless Claims for the week ending April 15 by the US Department of Labor. The forecast was slated for a rise from the previous reading of 234K to 242K.
However, the actual increase was more, as the Initial Jobless Claims rose from 234K to 244K. The report published stated that the “4-week moving average was 243,000, a decrease of 4,250 from the previous week’s unrevised average of 247,250“.
The US Dollar was seen trading a touch lower after the release, but overall, the GBPUSD may continue to trade in the range before breaking 1.2850 for the next move.