With the bulls failing to break above the main resistance area we have formed a double top at 7565 now so could well see a bit of a pullback down to the daily support area at 7449, before another attempt to push higher. If the bears were to break that level then we may well have set the high for the moment. The 2-hour chart has gone bearish after that drop yesterday and is showing resistance at the 7547 level, with a red coral trend line at 7549. I am thinking that the bulls may struggle to break above this level today and therefore a short here makes sense. If they were to break it then I am watching 7565 and 7600 for the next resistance areas of note.
We didn't get much of a bull Monday yesterday for the first time in a while so the bulls might well be running out of steam in the short term, and a trip down to 7500 in the very short term looks likely. It will also be interesting to see what Carney says at the Committee later in terms of further rate movements as it now sounds like he is looking at a rise in November. When he last cut he was mooting about reducing to zero so a bit of a change of tune. Quandary though: deal with inflation or leave low to keep the economy slightly buoyant.