FTSE Technical Outlook – GBP Pounding Helps Push Stocks Towards Record

FTSE Technical Highlights:

  • FTSE record high only a stone’s throw away
  • GBP been a big boon for the multi-national index
  • Pullback finally in the works soon?

Check out the DailyFX Quarterly Forecasts to find out what are likely drivers in the weeks ahead for the FTSE and GBP.

FTSE record high only a stone’s throw away

The FTSE is only a stone’s throw away from record highs, less than 1% from notching a new best ever. Last week, when we were looking at the footsie the thinking was we would see a pullback develop from resistance just under 7600. But not to be with the pound continuing to remain without a meaningful bid.

GBP been a big boon for the multi-national index

The FTSE would have rallied even if GBP hadn’t fallen sharply, with the help of firmer global risk appetite, but the move would have been much tamer. However, with the FTSE 100 index consisting primarily of multi-national companies who earn their profits outside the borders of the U.K., a weak currency gives earnings a boost once converted back into the local currency.

The helping (and hurting)

Article source: https://www.dailyfx.com/forex/technical/home/analysis/uk100/2018/05/16/FTSE-Technical-Outlook-GBP-Pounding-Helps-Push-Stocks-Towards-Record-PRtech.html?DFXfeeds=forex:technical:home:analysis:uk100