FTSE firm on GBP weakness (technical analysis article)

Thursday, 16th May 2019 11:49 - by Rajan Dhall

So following on from the last technical analysis article (http://www.lse.co.uk/blogs/expert/rajan-dhall/zw82lelp85j8twd/)

Today we are getting some key movement in USD denominated companies as the pound drops. Also, commodities names like BP, Shell and BHP are all higher this morning.

Looking at the technicals now from the last article the support level at 7174 held nicely and now we could be looking at a move toward the trendline resistance for a retest of the break.

The RSI made an interesting divergence (failure swing), this is pointed out by the higher low made by price and lower low made on the RSI indicator.

Obvious things to keep an eye on are any further issues regarding the US-China trade deal. Brexit woes seem to help the FTSE as the pound falls.

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.