FTSE opened lower on Friday, pressured by fresh strength of pound, after BoE’s policy voting on Thursday hinted possible earlier rate hike.
The index dipped to 7329 (near 61.8% of 7254/7444 09/16 Mar upleg) after posting fresh all-time high at 7444 on Thursday.
Near-term studies weakened on today’s fall and see increased risk of deeper pullback, as pound continues to rally.
While today’s gap remains unfilled, immediate risk is expected to stay shifted lower, with close below Fibo support at 7326, seen as another bearish signal.
Rising daily Kijun-sen marks next good support at 7306, loss of which would increase risk of return to 7254 (09 Mar correction low).
Conversely, filling today’s gap would generate positive signal and keep near-term focus at the upside.
Res: 7368; 7389; 7424; 7444
Sup: 7329; 7306; 7298; 7254
