The FTSE index consolidates as traders ponder inflation threat post-FOMC.
The rally above May’s high at 7160 is a bullish sign though short-term data-driven volatility is unlikely to die down. 7200 has capped buyers’ attempts to push higher and is now a key hurdle.
A dip below 7135 may force leveraged buyers to abandon ship, especially when a divergent RSI points to a loss in the upward momentum.
7100, a resistance-turned-support is an area of congestion as it lies on the 20-day moving average.
