FxWirePro: FTSE100 downside capped by 23.6% fib, good to buy on dips

FTSE100 halted its 1-week of loosing streak and shown a jump of more than 60 points from low of 7331.BOE has kept its rates unchanged and mentioned that “Overall GDP growth appears bang in line with forecasts”. But Brexit uncertainty is putting pressure on GBP.Polls took place for 248 English councils,six mayors and 11 councils in North Ireland. Both Labor and Conservative party lost heavily in local elections held across UK on Thursday. UK Services PMI came at 50.4 in line with forecast of 50.40.It hits intraday high of 7399 and is currently trading around 7399.

On the lower side, near term major support is around 7325 (23.6% fib) and any break below will drag the index down till 7296 (55- day EMA)/7235/7205 (200- day MA).

The near term resistance is around 7410 and any trade above that level will take the pair to higher level till 7457 (10- day MA)/7490. It should break above 7530 for further bullishness.

It is good to buy on dips around 7345-50 with SL around 7300 for the TP of 7530.