FTSE 100 Forecast August 8, 2017, Technical Analysis

The British index initially fell on Monday, but found a bit of resiliency as we start to grind towards the 7530 handle. A break above there should send this market looking for the 7550 level, and then beyond. I do like the prospect of this market longer-term, and I believe that the softening British pound is going to help. Longer-term, I believe that there is a lot of value to be found in British exports, because of the negotiations with the European Union, we should see continued pressure on the British pound longer-term, which of course makes those exports cheap. Those cheap exports should continue to drive this market towards the 8000 level over the longer-term.

Buying dips

I continue to buying dips on the short term charts, especially if we can stay above the 7500 level. I think that there is even more support below at the 7450 level, but quite frankly I would be surprised to see the market test that level again. I think we will get an impulsive move higher if the GBP/USD pair breaks down below the 1.30 level, which it is currently threatening. Either way, I don’t have any interest in selling anytime soon and I believe that we are likely to see bullish pressure of the longer-term regardless, but that currency move could supercharge the move and get us moving much quicker to the upside in the short term. Pay attention to both charts if you want to profit.

FTSE 100 Video 08.8.17