FTSE broke into daily cloud in extension of Wednesday’s strong fall (the biggest one-day loss since 21 Mar).
Fresh weakness on strengthening pound neutralized hopes of stronger upside action, signaled by Diamond bottom pattern that usually signals reversal.
Instead, the price penetrated daily cloud top which underpinned the rally since mid-Dec 2016, and re-focus key support at 7179 (27 Mar correction low / bottom of near-term 7179/7315 congestion, also near Fibo 61.8% of 7024/7444 upleg).
Wednesday’s long bearish candle weighs on near-term action, with repeated close in daily cloud, needed to maintain bearish pressure.
Sustained break below 7179 trigger would signal continuation of correction from 7444 (01 Mar fresh record high).
Broken daily cloud top and Tenkan-sen line (7141/47 respectively) mark solid barriers which are expected to ideally cap.
Conversely, lift above daily Tenkan-sen would ease immediate bearish pressure and re- focus upper pivots at 7280 and 7311.
Res: 7241, 7247, 7280, 7311
Sup: 7195, 7179, 7123, 7100