The Bank of England has opted to maintain interest rates at 0.5%. This follows last Novembers rate hike which was its first since 2007. The FTSE100 has been under pressure over the past few sessions as part of a wider decline in global indices following the new Fed Chair’s decision to increase rates from 1.5% to 1.75%.
The FTSE100 has reacted mildly, moving slightly up off a key level of support at 6970 where multiple trend lines dissect. Failure here will see the index lean on support around 100 points lower. Moving averages paint a poor outlook too, with the 100 DMA slipping back below the 200 DMA – the first time since June 2016.
Author: Stuart Langelaan