The Tradeview for today, in which is the penultimate day before UK voters head to the polls, another shift has taken place leading to some more movements in financial markets. GBPUSD which we analyzed yesterday, has today fell from its previous highs as key voting polls show that the lead of the conservatives and leader Boris Johnson has in fact diminished against expected runners up, Labour.
This news leads to the resistance of $1.31950 not only held, but declining to an intraday low of $1.31070. This decline sees the level of tension and uncertainty surrounding the potential outcome of the election and its impact on UK markets increase. That said today, we will analyze the state of the FTSE100 and the opportunities which could come from trading this index in the next 36 – 48 hours.
The story with the FTSE100 over the last few months has seen most major moves correlated to the strength or weakness of GBP. Recently when we’ve seen a weaker cable rate (GBPUSD) FTSE100 has trended upwards, with a stronger rate showing downward or bearish run. See the two weekly charts below.
As you can see, so far this week where the Pound has gained. The FTSE has sold off. Now, what about tomorrow? Although the FTSE has fallen, it has fallen to a support point within the weekly time frame. This support point of 7212 as you can see from the chart, has often been a point where buyers enter in droves. Looking further into this chart, the momentum indicators of the 10/25 day moving averages show us the potential for an upwards crossover. Which usually is the signal for an increase in the price of the market.
One thing is for sure, this could still go either way, however as we near the opening of the polls at 7 AM (GMT) tomorrow, traders are likely still trying to spot every potential opportunity available.
Senior Market Analyst