FTSE is consolidating after heavy losses on Tuesday when the index fell nearly 3% in the biggest one-day fall since 08 Apr 2011, triggered by strong rally of sterling, after UK PM May called for early election.
The index hit the lowest since early Feb at 7045 on today’s brief extension lower, focusing ked med-term support at 7024 (02 Feb low) to complete 7024/7444 bull-phase and open way for further retracement of larger 6675/7444 (02 Feb / 16 Mar ascend).
Psychological 7000 level marks next target, ahead of 200SMA at 6974 and Fibo 61.8% of 6675/7444 at 6969.
Technical studies turned into firm bearish mode on daily chart, as Tuesday’s fall broke below ascending daily cloud which underpinned the rally since early Dec.
Also, completion of asymmetric H&S pattern on daily chart, added on growing pressure.
Corrective attempts on oversold daily studies face initial resistance at 7100, followed by broken 100SMA at 7145, which is expected to limit recovery and guard next pivot at 7192 (daily cloud base, reinforced by Tenkan-sen line).
Res: 7100, 7145, 7192, 7234
Sup: 7045, 7024, 7000, 6969
