FTSE 100 Price Forecast July 12, 2017, Technical Analysis

The FTSE 100 fell significantly during the day on Tuesday, as we reached down towards the 7300 level. That area continues to offer support though, and we are still stuck in consolidation. Because of this, I believe that the market continues to go back between the 7400 level above and the 7300 level below. I think range bound and short-term back and forth trading is probably the best way to get involved, and I think if we can break above the 7400 level, the market should continue to go higher, perhaps reaching towards the 7475 level. I think that the volatility continues, because quite frankly we don’t have any clarity when it comes to the United Kingdom leaving the European Union. We need that to feel comfortable in this market, at least longer term.

Currencies

Pay attention to the British pound and what it’s doing in the currency market, because that will have a massive influence on what happens in the FTSE 100. This is a market that is highly leveraged to exports, and that means that the market will more than likely pay attention to the GBP/USD pair. If the British pound continues to fall, that might give a bit of a boost for the FTSE 100, but the one thing I think you can count on is that there is going to be a lot of noise. In the meantime, I’m simply trading this market in a sideways manner, taking advantage of the clear and present consolidation area that has been driving trading in both directions.

FTSE 100 Video 12.7.17