FxWirePro: FTSE100 trades lower on strong Pound Sterling, good to sell on rallies 

FTSE100 continues to trade lower for 5th consecutive days and lost more than 140 points on account of the strong Pound sterling. GBP hits a 6-week top against USD on better than expected UK data and slight optimism in the Brexit deal. The GDP came at 0.3% compared to a forecast of 0.1% which confirms that the chance of recession is low. It hits low of 7204 and is currently trading around 7212.

Technically, the near term major support is around 7200 (200-day MA) and any break below will drag the index till 7175/7135. The major weakness can be only below 7000.

The major resistance is around 7350 and dips from 7729 will end at 7020 only if the index closes above 7350. The minor levels to be watched are 7260/7300.

It is good to sell on rallies around 7255-60 with SL around 7300 for the TP of 7025.