The pound softened after an unexpected rise in the UK’s unemployment rate in April. The pair is struggling to hold onto its recent gains after a rally above last April’s high at 168.40. A drop below 166.00 has triggered a round of liquidation as buyers rushed to exit a crowded trade. The recent jitter above 162.00 has turned out to be a dead cat bounce. The bulls will need to clear the support-turned-resistance at 164.20 before they could regain control. Otherwise, the psychological level of 160.00 would be next.
