FTSE 100 Rally Blocked by Sterling Power and Heavyweight Technicals

FTSE 100 Worth, Evaluation and Chart:

Sterling (GBP) stays elevated as Brexit talks proceed.

Vital FTSE 100 technical resistance must be cleared.

Q1 2019 Buying and selling Forecasts.

The current push larger within the FTSE has come to a halt regardless of the markets adopting a risk-on sentiment. Monetary markets are persevering with to price-in looser financial coverage, including market liquidity and constructive sentiment to an already buoyant fairness house. Stories that US – China commerce negotiations are transferring ahead helps to spice up sentiment at the moment, though nothing has been confirmed.

The current FTSE 100 rally has stalled nonetheless, weighed down by a robust British Pound, with the inverse correlation between the 2 totally different asset lessons holding agency. Sterling is attracting consumers who proceed to imagine No Deal Brexit is being slowly taken off the desk and resolution to the Irish backstop drawback will likely be discovered earlier than the top of March.

Afterrallying over 700 factors from late-December, the FTSE 100 is now discovering additional upside blocked by two necessary technical ranges. The 50% Fibonacci retracement degree and the intently adopted 200-day transferring common meet across the 7,210 – 7,218 degree and whereas the index has pierced by means of this space, the FTSE 100 is discovering it troublesome to interrupt and shut decisively above right here. As well as, the RSI indicator is simply beginning to transfer out of overbought territory, signaling a possible downturn in sentiment. Assist is at the moment pegged round 7,130 and seven,056.

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FTSE 100 Daily Worth Chart (Might 2018 – February 21, 2019)

FTSE 100 Rally Blocked by Sterling Strength and Heavyweight Technicals

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What’s your view on the FTSE – bullish or bearish?? You may tell us by way of the shape on the finish of this piece or you may contact the writer at nicholas.cawley@ig.comor by way of Twitter @nickcawley1.

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