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.



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

Live Webinar

Live Webinar Events


Economic Calendar

Economic Calendar Events

Free Trading Guides
Please try again
More View more
Real Time News
  • We are heading into a Tuesday lull which precedes Wednesday's FOMC focus. Will the absence of distractions allow for risk trends to gain momentum or perhaps will Fed anticipation temper the $SPX tumble? My take:
  • CTV projects Trudeau wins his third term as Canada's Prime Minister - BBG
  • 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:
  • US House Speaker Pelosi says top-line spending number may change but hopes for $3.5 trillion in spending bill - BBG
  • RBA Minutes: - Board committed to providing high level of monetary support - Q3 GDP expected to decline materially - Central scenario is rates on hold until 2024 - BBG $AUDUSD
  • Heads Up:🇦🇺 RBA Meeting Minutes due at 01:30 GMT (15min)
  • New Zealand reports 14 new local Covid cases - BBG
  • I had a chance to talk with @tastytradeRyan and @victorJ0NES about Evergrande and its impact on US markets — always great talking with these two guys on Mondays.
  • RT @cheddar: Stocks dropped the most since May on Monday, sending shockwaves through Wall Street. @CVecchioFX explains the global impact of…
  • The Spinning Top candlestick pattern forms part of the vast Japanese candlestick repertoire with its own distinct features. Gain a better understanding of the spinning top candlestick here:
FTSE 100 – Big Support Break on Hawkish BoE, Strong Sterling

FTSE 100 – Big Support Break on Hawkish BoE, Strong Sterling

Paul Robinson, Strategist

What’s inside:

  • Hawkish BoE breaks the FTSE 100, rips sterling
  • A clean drop beneath 7300 clears a path towards 7100/50
  • Will take a reversal back above support to pause outlook

Confidence is must for successful trading. Check out this beginner’s guide – Building Confidence in Trading

On Wednesday, we took a look at the FTSE 100 ahead of yesterday’s BoE meeting, making note of the month-long trading range. Will the BoE break the range, we asked. Confidence in that happening wasn’t particularly high, but we recognized it as certainly a possibility. As we are seeing now it is becoming reality, with a hawkish BoE giving further life to an already strong sterling and sending shares reeling. We closed yesterday just below the very important 7300-mark, but just above the lowest point of the range created on 8/29 at 7289. So, if today the index can sustain trade where it is or worse, that will make for a confident break.

Not only will thoroughly tested horizontal support have been cleanly broken, but the double-top will be triggered with an official break of the neckline, along with saying goodbye to the 200-day moving average. The February 2016 trend-line is long gone with yesterday’s sell-off. This sets the index up for a move towards the area right around 7100, which has pretty good support, but between here and there we are left with room to operate from the short-side. The measured-move target derived by the height of the double-top formation points to a move to around 7050.

There is a lot of time between now and the close of trade today, and should we see a reversal back above our big threshold of support, then we will need to put the brakes on shorts. It won’t turn the outlook bullish, but will require waiting for the clean break before sharpening the knives. The FTSE heading lower would certainly be contra to our outlook for other major indices – DAX, CAC 40, S&P 500 – but these markets aren’t joined at the hip and can go do their own thing.

Paul conducts webinars Tuesday-Friday. See the Webinar Calendar for details, and the full line-up of upcoming live events.

FTSE 100: Daily

FTSE 100 – Big Support Break on Hawkish BoE, Strong Sterling

---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.