FxWirePro: FTSE100 holds well above 7000 level on US-China trade talks take off and weak pound good to buy on dips

FTSE100 is trading higher for day and jumped nearly 0.45% after a minor consolidation. The index has jumped more than 450 points from minor bottom 6733 following footsteps of global markets. The weak pound sterling also supporting the index. Cable has lost nearly 150 pips from the high 1.29935 on weak UK GDP data. The index has formed a bottom around 7065 on Friday after forming a top at 7188.

The index has taken support near 23.6% fib around 7062 and shown a minor jump. Any weakness in the near term can be seen if FTSE100 trades below 7038 and any violation below targets 6959 (20 day MA). Any close below 6960 confirms further weakness and a dip till 6900/6833.Major bearish continuation only below 6733 level.

On the higher side near term resistance is around 7200-7220 any break above confirms bullish continuation and a jump till 7300/7560 is possible.

It is good to buy on dips around 7100 with SL around 7060 for the TP of 7200/7300.