FTSE 100 Price Forecast January 26, 2018, Technical Analysis

The FTSE 100 has broken down significantly during the trading session on Thursday, testing the 7600 level. That is an area that should be supportive based upon recent action, and I think that if we break down below there we will probably then go looking towards the 7500 level. Any time we rally from here, I would expect to see signs of exhaustion, at least on the short-term charts. One of the biggest problem is going to be that the British pound has exploded to the upside, and that makes British exports much more expensive.

I believe that the 7500 level being broken down below would in the uptrend, but I think it’s a bit early to worry about that. We could see a bit of a turnaround, but I would need to see it based upon high-volume, and perhaps even a daily candle at this point. US stock markets continue to rally, as the US dollar falls. The exact opposite seems to be happening in the United Kingdom, so we will have to be very patient about putting money to work. As far as shorting is concerned, you could do so underneath the 7600 level, but I would do so in a very small position. I will keep you advised of any attitude changes in the FTSE 100 here at FX Empire, but right now it looks soft to say the least. However, in the end it could very well end up being a nice opportunity to pick up value if you are patient enough.

FTSE 100 Video 26.01.18