GBPUSD
The FTSE 100 index continues its bullish run as the consolidation at the 7,000 appears to have ended. The market formed a symmetrical triangle that looks like a continuation pattern, and the measured move suggests 7,300 sooner rather than later.
What is interesting is that the strength in the British index comes at the same time with strength in the local currency. The British pound is strong across the dashboard, especially against the US dollar.
Later in the trading day the Bank of England’s Governor Bailey holds a speech, and thus he may move markets. The Bank of England is in a position where it may be forced to adjust its monetary policy as the economy reopens after the COVID-19 lockdowns.
The technical picture looks bullish. A daily close above 7,050, and, ideally, above 7,100 would trigger more strength on the way to 7,300. Bulls may want to stay on the long side on such a break, with a stop-loss order just below the 7,000 and a take profit level at 7,300. On the flip side, a daily close below 7,000 should trigger more weakness, as it suggests that the triangle acted as a reversal pattern, and a complex correction just ended.
Follow Mircea on Twitter.
