FTSE 100 started the session lower today but as of writing it turned positive as the euphoria after the clear win of Conservatives in the election last week. The Conservative party secured a clear majority which opens the way for the much anticipated Brexit.
On the data front, the employment is improving as the United Kingdom ILO Unemployment Rate came in at 3.8%, below forecasts of 3.9% in October. The Average Earnings Including Bonus registered at 3.2% below estimates of 3.4%. United Kingdom Claimant Count Rate increased to 3.5% in November from the previous 3.4%.
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Pound Breaks Below 1.32
GBPUSD is under pressure for the second day in a row giving up 1.09% at 1.3421. A weaker Pound helps the FTSE 100 as most of the companies included in the FTSE 100 index derive their earnings from international trading.
FTSE 100 Consolidates at Four-Month Highs
FTSE 100 index consolidates today close to four-month highs as the technical outlook is clearly bullish now for the index. The positive momentum supported by fundamentals and technical indicators.
Investors are looking for higher levels, but first the FTSE needs to break above the daily top at 7,537.7 and then needs a close above 7,550 yesterday’s session high. That will give more confidence to buyers in an attempt to the next resistance at 7,646 the high from July 31st. If the FTSE 100 index breaks above that level then bulls next target is the yearly high at 7,719.
On the other hand, an immediate barrier to the downside stands at 7,497 the daily low. In case the index breaks below that level, the next target is the yesterday’s low at 7,354. Next strong support for FTSE 100 will provide the 200-day moving average at 7,324.
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