As concerns about the pandemic consequences of the Covid19 delta variant on the financial market continue, demand levels on many stocks have fallen, and prices are moving in the corrective direction, resulting in declining key indices such as the Dow Jones and S & P500. However, these indices are currently fluctuating near historic highs and are likely to decrease in the short term.
In the mid-term, the reaction to the daily and four-hour timeframe moving averages should be observed. Tonight, US Federal Reserve Chairman, Jerome Powell, will deliver a speech, which could also affect stock price trends.
Unemployment and monthly average earnings have risen sharply in the UK today. The unemployment rate improves from 4.8% to 4.7%, and the average monthly average earnings index plus bonus has increased more than expected by 8.8%. However, the demand for the British pound against the US dollar has continued to decline, and now the price had reacted to the high level of the bearish channel and is moving in a downtrend.
Fundamentally, positive news of the UK unemployment rate may lead to an uptrend. Still, technically the first possibility in the short term will be to continue the downtrend trend to the lower end of the bearish channel. Therefore, the price reaction to the support of 1.3790 will be significant.
Today, the US Retail Sales and US Core Retail Sales will also report, which is expected to be significantly lower than the previous period. The actual reporting numbers can affect the price trend.