- In our report here yesterday (Wednesday 14th February), we highlighted downside risks for the Pound into another Brexit vote, with a technical trigger for GBPUSD below the key 1.2831/29 support
- The GBPUSD plunge through here alongside broader Pound weakness is often a positive for the UK benchmark index, the FTSE 100, as it is heavy with exporters, who benefit from a weakening of Sterling.
- Here we look at the FTSE 100, which retains both short- and intermediate-term bullish trends, even with European and US equity averages dipping lower over the past 24 hours.
FTSE 100 bull trend fully re-energized
Another strong advance Thursday through 7178 resistance again to a new cycle high for 2019, building on the solid Wednesdays rally, re-energizing both the short- and intermediate-term bullish trends, and despite a slight dip keeping the bias higher for Friday.
The early February push above 6941.5 sets an intermediate-term bull trend.
- We see an upside bias for 7188.5; break here aims for a key retracement at 7206, then for 7224.5.
- But below 7122 opens risk down to 7081.
Intermediate-term Outlook – Upside Risks: We see an upside risk for 7206 and 7455.5.
- What Changes This? Below 6869 shifts the outlook back to neutral; through 6671 is needed for a bear theme.