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The UK 100 index has pulled all the way back to the floor of its post-Christmas rising channel. This comes on the back of GBP strength, driven by poor macro data from the US and Eurzone which hurt their respective currencies.
A Brexit delay has also given Sterling a boost, pulling the UK Index ‘s internationally-exposed names lower. As we write, only a handful of names are looking to close the day in the black. UK 100 is driven lower by the usual high-beta suspects: Energy (lower oil prices), Banks/Miners (risk off) and Defensives (strong GBP).
Bulls need a break above 7240 to revive the uptrend with a meaningful bounce. Bears require a breach of 7180 rising support to overpower the up-channel.
Our watch levels: Bullish 7240, Bearish 7180
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Prepared by Michael van Dulken, Head of ResearchComments are closed.