FxWirePro: FTSE100 trades lower on the strong pound sterling, good to sell on rallies

Major support- 7100

FTSE100 is trading lower after a minor recovery till 7256 yesterday on the strong pound sterling. GBP is trading higher against the US dollar and raised more than 10% in the past 1- month on Brexit optimism and UK election.  According to the latest survey shows that voting intention for Conservatives has increased to 2% to 45% while for labor dropped to -2 pts to 31%.

On the flip side, near term support is around 7100 and any indicative break beneath will drag the index till 7020. Major bearish continuation only below the 7000 levels.

The major resistance is at 7200, any indicative break beyond will take the index to next level 7240/7268-7273 (55- day EMA and 200- day MA). Any daily close above 7275 confirms major bullishness.

It is good to sell on rallies around 7185-90 with SL around 7240 for the TP of 7025.