The FTSE 100 has reached towards the highs again, and now I think we are getting ready to break out to the upside. However, we may get a short-term pullback to build up the necessary momentum to go much higher. The 8000 level is my longer-term target anyway, and even if we do get the pullback I think it will only offer a bit of value that we can take advantage of. I like the idea of buying the FTSE 100 as it is one of the best-performing stock markets that I follow here at FX Empire, and of course the GBP/USD pair looks likely to break down, causing exports to be cheaper out of the United Kingdom.
Longer-term, we have been very bullish in this market, and the significant bounce that we have seen over the last two months should continue to be in the back a traders minds as they look for value on those dips. It’s very difficult the short this market, and I believe that the volatility in the marketplace is most certainly favoring the upside overall, as currency markets will give a hand as interest rates in the United States continue to grind higher. We desperately need some type of pullback, but if we make a fresh, new high, you can’t argue with that signal either, as we are more than bullish it strong in this market as much everybody else in the world can see.