The information on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it and as such is considered to be a marketing communication.
FTSE 100 in danger of dropping back to 7400
With the pound continuing to strengthen against the US dollar, it has been hard for the FTSE to sustain the election night bounce. Indeed, having failed to break back above April rising trendline, it now looks in danger of dropping back to 7400 or lower.
However, sellers will need to break through the 7480 area that has acted as support since Friday. This would pave the way for a more bearish move. Buyers will want to clear 7560, which would leave us within easy distance of the 2 June all-time high.