Following on from our previous post the FTSE continues to hold support.

Following on from the previous post we expected FTSE to retrace back towards trendline support for a further push higher, over the last 8 days, the FTSE has done just that pulling back towards support at 7,900 to now find a base. MACD is actually trending negative at the moment with an RSI reading of 54, therefore suggesting a neutral bias. The FTSE does have some tough resistance above at 7,942 followed by 8,000 and then the 8,044 swing high. Towards the downside, support for the index sits at 7,840 where the 100 MA & trendline sits. A break of this level here could see the index turn much lower. It is important to take into account the value of the GBPUSD pair, if the GBP spikes in the short term, the FTSE will be made with more resistance, if the GPB falls, it could help push the FTSE back towards the highs.