The bulls failed to break above the 7200 level yesterday to target the 7220 resistance area, and then the drop stalled at 7141. We saw a modest bounce from there but as you would expect everything is all a bit cautious as the political Brexit wrangling carries on. For today the support level at 7140 still looks valid, and with the cam break out just below here at 7131 and then the fib level at 7124 I think that should the bears break below the 7141 then a drop a bit further to this area looks possible. If that holds again then a climb towards yesterdays high at 7199, and then 7220 is on the cards.
The daily chart remains bearish, but we may well get a tailwind from the bullishness in the US, where the S&P is holding above the 3000 level and looks like we may well get a push towards the 3020 and possibly 3033 levels today. As mentioned above cable popped through 13000 yesterday but then dropped back a bit though the shorter didn't exactly pile in. So a further rise on that looks likely, which is what is suppressing the FTSE 100 for the moment.
With yesterday being mildly bullish, the 2 hour chart has gone bullish, with support at the 7156 level to start with today. An overnight test of this level has held, but not exactly set the world alight thus far. The bulls really need to break above 7220 and then 7275 to get the FTSE 100 bullish, but it may well be treading water while the Brexit deals (or no deals!) play out, and then we get a Brexit bounce after the 31st. Maybe!
If the bears break below the 7120 level then we are looking at a drop down to the 7083 area which may well see a hold, though if not then 7024 is next up, and also the recent low at 7007. I imagine the powers that be will be keen to keep the price above 7000, if for no other reason that negative headlines as we "do" Brexit about poor performing stocks will not play out well with the public. Especially as we have a Brexiteer in the hot seat now and calling the shots. (Conspiracy mode off now!)
For today I am keeping it fairly simple again, and looking for a dip and rise pattern to play out for a test of the 7200 and 7220 levels.