On the daily chart index FTSE100 is still in the downward channel with the bottom limit below the level of 5500.0. However, on the weekly chart the indicators OsMA and Stochastic are reversing towards long positions. On 4-hour chart the indicators also recommend to open buy positions. The price is moving in the upward channel with the upper limit near the level of 6228.0 (beginning of decline since January 2016). Breakdown of resistance level 5900.0 (Fibonacci 50%, ЕМА200, ЕМА144 and ЕМА50 on 4- hour chart) will become a strong signal of the rise in price in the upward correction. The price had broken up resistance level of 5960.0 (ЕМА50 on the daily chart) and reached the level of 5976.0 (Fibonacci 61.8%), which gives ground for the further rise in price. If the rise continues the price can reach the levels of 6160.0 (ЕМА144), 6228.0 (Fibonacci 100%) and 6255.0 (ЕМА200 on the daily chart).
The movement in the pair will depend not only on the state of the British economy, but also on the commodity prices and overall state of the world economy.

Support levels: 5930.0, 5900.0, 5820.0 and 5725.0.
Resistance levels: 6050.0, 6100.0, 6160.0, 6200.0 and 6228.0.

Trading tips
Buy Stop: 6000.0.
Stop-Loss: 5960.0.
Take-Profit: 6050.0, 6100.0, 6160.0, 6200.0, 6228.0.

Sell Stop: 5890.0.
Stop-Loss: 5930.0.
Take-Profit: 5820.0, 5800.0, 5725.0, 5700.0 and 5600.0.

The material published on this page is produced by LiteForex and should not be considered as the provision of investment advice for the purposes of Directive 2004/39/EC; furthermore it has not been prepared in accordance with legal requirements designed to promote the independence of investment research and is not subject to any prohibition on dealing ahead of the dissemination of investment research.

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