FxWirePro: FTSE100 forms inverse head and and shoulder pattern, any break above 7169 confirms bullishness

Chart pattern- Inverse head and Shoulder pattern

FTSE100 has once again recovered after declining slightly below 7100 level. The index hits low of 7097 yesterday and jumped till 7153.The index was trading weak and lost more than 3% after forming temporary top around 7262. The decline in GBP is supporting FTSE100 index currently and it has lost nearly 200 pips after forming temporary top around 1.3350.FTSE100 is currently trading around 7151.

On the higher side, the index is facing strong resistance around 7165-69 (200-H MA) and any break above this confirms minor bullishness and a jump till 7176/7215. The index should break above 7262 for further bullishness.

The near term support is around 7096 and any violation below targets 7065/7042. Any break below 7046 (300- 4 H EMA) confirms further bearishness.

It is good to buy on dips around 7135-40 with SL around 7095 for the TP of 7215/7262.