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GBPUSD : A signal of Bullish Rally

GBPUSD on the 4 hour chart is rising from the support trend line in response to the upbeat U.K. data boosting confidence among investors about the economic recovery. According to the Office for National Statistics, the U.K. unemployment rate fell to 6.6% in the three months to April which is lowest since early 2009 beating the economist’s expectation for a decrease to 6.7%. The claimant count which is the number of people receiving jobless benefits fell by 27400 better than the estimated decline of 25000 people.

(GBPUSD : 4 Hour Chart)

GBPUSD is showing a bullish trend as it found support from the rising support trend line forming an ascending triangle which gives a signal that the pair might continue to follow the existing trend by breaking the resistance trend line. The resistance is at 1.6813. BOE member Ian McCafferty earlier said that the bank is closely looking at the economic data over the coming months to determine when to increase interest rates. This raises investors expectations that the central bank might raise interest rates sooner than later.