UK100 Posting Gains

We have recently seen price print a higher high at the 7780 area, price has since come back down to the broken 7600 resistance turned support/38.2% Fibonacci retracement area and shown a bullish rejection.

Market sentiment seems to be looking for the UK100 to continue to the upside. A break of the 7780 resistance would open a large amount of room to the upside and give the potential of price reaching 7933/-61.8% Fibonacci extension level.

On the other hand, however, we could see a bearish turn that could lead the price to a major bear target at 7300 which would create a double bottom. Given the strong economic outlook for the UK we could be cautiously optimistic.

Chart: UK100, D1