News & Analysis at your fingertips.

We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site. See our updated Privacy Policy here.

0

Notifications

Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events

0

Economic Calendar

Economic Calendar Events

0
Free Trading Guides
Subscribe
Please try again
GBP/USD
Bearish
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
More View more
Real Time News
  • Greed is a natural human emotion that affects individuals to varying degrees. Unfortunately, when viewed in the context of trading, greed has proven to be a hindrance more often than it has assisted traders. Learn how to control greed in trading here: https://t.co/kODPAfs2Iz https://t.co/6dAqxsVfxJ
  • The results of this weekend’s German Federal Election will likely dominate Euro sentiment at the start of the week ahead but after a possible EUR/USD bounce they will have little long-term impact. Get your weekly $EUR forecast from @MartinSEssex here: https://t.co/Xu3ZT7EtrW https://t.co/5VHKn52MaA
  • The Consumer Price Index, better known by the acronym CPI, is an important economic indicator released on a regular basis by major economies to give a timely glimpse into current growth and inflation levels. Learn how to better understand CPI here: https://t.co/nAa0fHq4Np https://t.co/mf9rsmIvaW
  • A currency carry trade involves borrowing a low-yielding currency in order to buy a higher yielding currency in an attempt to profit from the interest rate differential. Find out if the carry trade suits your trading style here: https://t.co/7t4BzmLg8w https://t.co/mYWO0Eta0P
  • Sterling continues to contract into trend extremes and the focus is on a pending breakout in the weeks ahead. Get your weekly $GBP technical forecast from @MBForex here: https://t.co/ZvEMQuFjSs https://t.co/rMmq9cehnY
  • Japanese candlesticks are a popular charting technique used by many traders, and the shooting star candle is no exception. Learn about the shooting star candlestick and how to trade it here: https://t.co/mfwJ0sZLTs https://t.co/tm4k3IVzHr
  • Do you know how to properly Identify a double top formation? Double tops can enhance technical analysis when trading both forex or stocks, making the pattern highly versatile in nature. Learn more about the double top formation here: https://t.co/t9FlspUVZz https://t.co/FFMy5O9YoY
  • It’s important for traders to be familiar with FX spreads as they are the primary cost of trading currencies. Understand a pair's spread here: https://t.co/zEEUHZBx7g https://t.co/jZHcyAZ5SU
  • Further your forex knowledge and gain insights from our expert analysts on EUR with our free guide, available today: https://t.co/XtydfV5wS6 https://t.co/Iw9haaHAnn
  • The Federal Reserve System (the Fed) was founded in 1913 by the United States Congress. The Fed’s actions and policies have a major impact on currency value, affecting many trades involving the US Dollar. Learn more about the Fed here: https://t.co/ADSC4sr63f https://t.co/raO3gCGqQ6
FTSE 100 Found Its Footing at Support, but Will It Last?

FTSE 100 Found Its Footing at Support, but Will It Last?

Paul Robinson, Strategist

What’s inside:

  • FTSE 100 bouncing from support around 7300
  • Currently trading above the broken 2016 trend-line, important to close above
  • For a bearish outlook to resume a clean break of 7300 is needed

Find out in our Q3 Forecast what’s driving the FTSE 100 & Sterling this quarter.

The last time we discussed the FTSE 100 it was in a precarious position, one which we talked about in the weekly forecast. The UK index went from nearly closing to a new record high to testing the neckline of a possible ‘double-top’ formation in a week’s time. There was no shortage of volatility.

The operative word in the prior sentence being “testing”, because while it appeared as though the footsie was going to breakdown soon (it had already broken the Feb 2016 trend-line) it closed last week at neckline support. Support is support until it isn’t.

Speaking of the Feb 2016 trend-line, today we are seeing the market climb back above, whether it can stay there until the close is a question we’ll have the answer to in a few hours. A close back above would be viewed as an important recapture of broken support. A close below would put in a daily reversal bar and constitute a failed retest.

In the event of sustaining above, then the bias is neutral to bullish. Possibly the footsie is working on carving out a trading range of ~7300-7550 in this case. If we see a failure to hold onto this bounce, then focus will shift back towards the neckline of the double-top. In this case, 7300 becomes the critical level of support to watch, and on a break focus shifts towards lower prices with not only the double-top triggered but it would also constitute the first lower low since 2016.

FTSE 100: Daily

FTSE 100 Found Its Footing at Support, but Will It Last?

See the Webinar Calendar for a full line-up of upcoming live events with DailyFX analysts.

---Written by Paul Robinson, Market Analyst

You can receive Paul’s analysis directly via email by signing up here.

You can follow Paul on Twitter at @PaulRobinonFX.

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

DISCLOSURES