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The markets had ultimately called the result, and the moves in both the pound and the FTSE have been vindicated this morning. As it stands, we may now see some profit-taking.
Mining sector capping FTSE gains
Having made an attempt to breach the 6900 – prior to market open this morning – the FTSE has staged a retreat, with the mining sector keeping a cap on any upside despite the broader gains seen in the likes of RBS and Lloyds.
If we can see a break through the 6905 level then we could see the index challenge the all-time highs of 6930 – this will present some resistance in itself.
The 6860 level is providing support for now. Any moves down through here would see the 6830 level in the frame.
DAX RSI looking overbought
The DAX has taken off this morning and bid farewell to the resistance that lay at 9800. The support comes from here and then 9778.
A close above the 9900 level would put the German benchmark on a trajectory towards the highs seen back in June.
In a bullish channel from the lows of 8 August, the relative strength index is looking a little overbought so a little profit-taking prior to a higher high seems the likely scenario.
Dow supported by 17,150
The strong rally today means the uptrend formed from the February 2014 low is now a potential target, which would put the index at 17,500. Any drop back would target the 20-day moving average around 17,107, and then downwards to the 50-DMA at 16,930.
The 17,150 level, on the hourly chart, is a potential support, but the drop back from overbought levels, on the intraday RSI, indicates the upward pressure that may have stunted progress has now dissipated.