Skip to Content
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
FTSE Technical Outlook – Trading in Resistance Zone, but Will it Matter?

FTSE Technical Outlook – Trading in Resistance Zone, but Will it Matter?

Paul Robinson, Strategist

FTSE Technical Highlights:

  • FTSE rally continues with impressive momentum
  • At top of resistance zone, appears overbought
  • ‘Super Thursday’ tomorrow, GBP impact could be felt

Check out the newly released DailyFX Quarterly Forecasts to find out what are likely drivers in the weeks ahead for the FTSE and GBP.

The FTSE has put together an impressive rally since bottoming in late March, but can it continue? At this time the market is overbought as evidenced by its lack of pullbacks during this nearly 10% run, and with the index trading at the top of a resistance zone, a pullback is favored.

There is a very steep trend-line rising up just under the footsie since the rally began, and a break below should have the market in pullback mode or worse. How that pullback plays out will determine our next move. If it is fierce, then we may have seen the best of the run for awhile and shorting will become the approach on rallies. If the decline is shallow and met with dip-buyers, then at some point we may see a run towards the old high.

Tomorrow, we have ‘Super Thursday’ with the BoE not only making an announcement on monetary policy, but also releasing its inflation report. The FTSE and GBP have an extremely strong inverse relationship right now, with the 1-month correlation at -98%. The two are practically trading on a 1-to-1 basis inversely. With that in mind, should we see a strong move in sterling we are likely to see the opposite unfold in the FTSE.

For live coverage of the BoE announcement, join my colleague Nick Cawley at 10:45 GMT time.

See this guide for 4 ideas on how to Build Confidence in Trading.

FTSE Daily Chart (w/Correlation to GBPUSD)

FTSE daily chart with correlation to GBPUSD

Tools for Forex & CFD Traders

Whether you are a beginning or experienced trader, DailyFX has several resources available to help you; indicator for tracking trader sentiment, quarterly trading forecasts, analytical and educational webinars held daily, trading guides to help you improve trading performance, and one specifically for those who are new to forex.

---Written by Paul Robinson, Market Analyst

To receive Paul’s analysis directly via email, please SIGN UP HERE

You can follow Paul on Twitter at @PaulRobinsonFX

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