FTSE consolidating after sharp rally
The FTSE managed to break out from its range in style yesterday, with the index gaining after dovish comments from Janet Yellen. We are seeing consolidation this morning, with the price breaking sideways from a symmetrical triangle.
Ultimately, we are looking for a break from the 7409-7434 zone to provide a directional bias from here. Given the fact that we have not seen the index break through the first swing high of 7453, we could still be looking at a retracement of the late June sell-off. Hence it is no surprise that we are seeing some selling come into play here.
As such, watch out for a break through 7453 as a strong bullish signal. Until then, it looks likely we will see some selling come into play today.