UK GDP to Trigger A Neckline Break on Inverse Head and Shoulders on FTSE 100?
On the 4-hour chart of FTSE 100 CFDs (UK100), we can see that the UK’s stock index made higher lows after a series of lower lows. In effect, an inverse head and shoulders chart pattern has formed. This is considered as a bullish reversal indicator in forex trading. However, buyers will need to clear the neck line resistance around 7,519.0 before a bigger rally can ensue.
Perhaps the UK GDP report for the fourth quarter of 2019 can trigger a bullish run on FTSE 100. Due at 9:30 am GMT, it is expected to show that the UK economy was flat during the quarter. Meanwhile, the monthly GDP report for December is eyed to show at 0.2% uptick. Aside from the GDP report, the country’s industrial production and manufacturing production reports for December are also due. There are seen to come in at 0.3% and 0.5%, respectively.
Better-than-expected data could be bullish for the FTSE 100 CFDs. If the reports top forecasts, we could see the index rally to its January 17 high around 7.687.0. On the other hand, disappointing figures could drag it down to yesterday’s lows around 7,427.5 or maybe even to its January 31 lows around 7,257.0.