FTSE 100 Index Price Forecast July 31, 2017, Technical Analysis

The FTSE 100 gapped lower at the open on Friday, turned around to fill the gap, and then sliced below the 7400 level. In fact, as traders left London, they were massive sellers of this index. That is a very negative sign, and I think that the market is going to go looking for the 7300-level next. Short-term rallies should be selling opportunities, and I believe that the 7400 level above is essentially a short-term “ceiling” in the market. If we were to break above there, I would become bullish again, but until then I think that it’s more likely that the 7300 level will be broken.

GBP/USD

The British pound continues to rally against the US dollar, and that brings and strength to the British pound overall. This is a bit of a headwind when it comes to the export market coming out of the United Kingdom. Because of this, I think that there is a lot of concern in this market due to currency headwinds, but ultimately, I think that the market needed to pull back anyway as we have seen so much in the way of noise. If we were to break down below the 7100 level, that would kill the absolute uptrend as far as I can see. I think we see short-term bearishness, but eventually we should find buyers below.

FTSE 100 Video 31.7.17