FTSE 100 stays firm, aided by a weakened Pound

Intermediate
  • 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.

For Today:

  • 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.

Daily Chart

FTSE100


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Current Market Analysis
Euro breaks down, GBPCAD threatens upside

US Dollar Index holds support and rebounds EURUSD seeds multiple negative signals, downside risks GBPUSD sends buy signal GBPCAD sets up more bullish AUDUSD negative and USDCAD buy signal USDTRY and USDBRL surge

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