The UK 100 Index has pulled back over the last few days of trading as the resistances associated with the moving averages proved too much for it to overcome. The price is currently trading around the 7285.00 level after breaking under 7500.00 and 7400.00 areas. The next level of support can be seen at the September lows around 7219.80. A loss of this area may see 7200.00 retested followed by the falling three touch support trend line at 7120.00. Below this level the 7100.00 area may be supportive followed by the 7000.00 round number. The March low at 6840.00 might provide support on a dip to that point.
Resistance can be seen around the 50 and 200 DMAs at 7470.00. A break higher would need to engage the 7500.00 level, followed by the falling resistance trend line and the 100 DMA at 7561.00, which was the September high. Any breakout from this resistance zone may squeeze short positions and hunt stops up to 7800.00. This is a significant level of potential resistance. Beyond this the 7900.00 level capped price for 2018 and guards the way to 8000.00.
This pair is still consolidating with price action now focused on the 1.0950 area and the 50 DMA. A break higher might see a retest of the falling resistance trend line at 1.0972 that provided today’s high. This would put pressure on the 1.1000 level. There may be a zone of resistance around this level so traders will have to watch out for price action. The next level of potential resistance might form around 1.1050 which has seen price action in the past. This leaves the 1.1100 level overhead followed by the August high around 1.1177.
Support at the 100 DMA can be seen around 1.0912 with the 1.0900 level close by. Below this area the rising support trend line may impact price action around 1.0863 close to the September lows. The July low is marked on the chart at 1.0842 followed by the 200 DMA around 1.0817. The 1.0777 level provided support and resistance in the past and traders may lean on this area if price falls down to this level. Under this point the 1.0700 level may act as support followed by the June lows around 1.0656.