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