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FTSE 100 plummets below key support level
The FTSE 100 has suffered at the hands of a stronger pound, as the repercussions of a rising inflation rate take its toll on the pound itself, and subsequently the FTSE 100. The break below 7357 brought about a bearish short-term outlook, with the index heading towards the lower end of its recent range. With that in mind, it makes sense to sell into rallies, with a break above 7403 needed to negate the bearish outlook. Watch out for trendline support to the downside, which coincides with wider 76.4% retracement.
Ultimately, we could be heading towards a move back into the lower end of the 7300-7460 range. Yet a break below 7319 would be required to negate the creation of higher lows.