Is FTSE 100 playing catch up?

Wednesday, 23rd October 2019 14:57 - by Rajan Dhall

The FTSE 100 has rallied after last nights vote in the house of commons. 

The MP's voted in favour of the Boris bill, which is the first Brexit bill to be passed. But they failed to vote in favour of the timeline, which means that there is only a slim chance that the UK will leave the EU by 31st October.

Now looking at the technicals on the four-hour chart you can see the previous wave high has now been taken out.

This is key as the FTSE has been lagging behind some of the other major indices.  If GBP/USD stagnates for a while then we could see this continue to the next resistance target of 7440.8

There are a few variables in the way. The UK PM may call an election or this "flextension" that has been thrown around may work out and the deal may get pushed through with only a slight delay. 

The price has now printed above the 7251.8 resistance point but we still need a close above for confirmation. 

There is also a trendline in the way that could cause some difficulty so keep an eye on that. Overall if GBP/USD is contained and the Brexit process is stalled it may be good for the UK's main index.

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.