Friday, 9th August 2019 13:30 - by Rajan Dhall
The weekly chart above is showing a bearish picture with the RSI indicator breaking its trendline looking lower. Also, the relatively steep trendline on the chart has also broken and not quite reached the support level of 7122. The weekly candle has not closed yet but doesn't look conclusively bullish or bearish at the moment, today's close will give us more clues to whether the bearishness will continue.
On the daily chart, the bearish picture is confirmed but the price is looking to retest the trendline it broke four sessions ago. Similar to the weekly the RSI has broken a supportive trendline and indicates a move lower. The 7122 support level looks to be an important one but any break below that could put the 7000 and 6876 levels in focus.
Today we also got the latest GDP readings which came in below expectations of 0.0% to record a contraction of -0.2%. Unfortunately, the bad news didn't stop there as manufacturing production recorded a reading of -0.2% vs exp -0.1%. To round it all off, quarterly business investment came in below expectations of -0.3% and fell -0.5%. Interestingly as in the past if this has a negative effect on the pound it could boost the FTSE 100.
The Writer's views are their own, not a representation of London South East's. No advice is inferred or given. If you require financial advice, please seek an Independent Financial Adviser.