The FTSE 100 is trading at levels not seen since December 2016 after a rally in the pound’s value. What added to a tough day for shares worldwide? Get insight on these from the 20 March FTSE 100 Technical Outlook.
20 March, ADS Securities – The FTSE 100 index posted significant losses in the previous session, as Sterling rallied after news emerged that the EU and UK had agreed on the conditions of a Brexit transition deal.
20 March FTSE 100 Technical Outlook
As visible on the hourly chart, the index is trading in a downward trending channel, hinting at bearishness in the coming session. Moreover, the 1H MACD is sharply grinding lower, further validating the above stance. Crucial intraday support is located at the psychologically important 7000 handle, a breach below which might trigger further weakness in the index, paving the way for the 6980 and 6940 levels.
On the contrary, important resistance is situated at the 7080 level, followed by the 7135 where the EMA 55 is placed and the 7190 level. A clear and sustained break above the latter might trigger strength in the index.
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