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FTSE breaking lower, yet upside story remains
A pretty radical 24 hours have seen a sharp appreciation of the GBP/USD pair thanks to Trump’s latest comments, sending the FTSE lower. We have seen a move below 7331 support, which is a little worrying.
However, considering the strength of the 7254 support level, coupled with the fact that we broke into a new higher high on Tuesday, it looks like we could be looking at a retracement of the rally from 7254. With that in mind, the move from the 7291 (76.4%) to 7300 (70%) levels looks attractive for potential longs. We would need to break below the 7253 to really spell trouble for the index, and until then we could see a resurgence for the FTSE.
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