FTSE eased on fresh strength of pound on Wednesday, pulling back from cracked 7280 barrier (Fibo 38.2% of 7444/7179 correction).
Mixed technical studies are lacking clear direction signal for now, however, near-term action off 7179 (27 Mar low) remains supported by rising daily cloud that keeps alive hopes of fresh upside attempts.
Such scenario requires daily Tenkan-sen (7247) and daily cloud top (7241) to hold current easing, as near-term action has formed Diamond bottom pattern which is seen as reversal signal.
Recovery attempts then need to clear initial barrier at 7280 to trigger fresh upside, with break above daily Kijun-sen (7311) that previously capped recovery, needed to confirm reversal.
Conversely, violation of daily cloud top and diamond’s lower boundary (bull-trendline) would generate negative signal and risk further weakness
Res: 7280, 7311, 7343, 7367
Sup: 7247, 7241, 7222, 7190
