With the Bank of England Minutes coming out during the session today, we anticipate that there could be a bit of movement in both the GBP/USD and the FTSE today. With that, we are paying attention to the way the market reacts and see technical setups in both markets to pay attention to.
The FTSE as you can see shot higher during the course of the session on Tuesday, but struggled at the 6650 level again, to pull back and form a shooting star. While this is a negative candle stick, the hammer from the previous session suggests support. So with this we believe that the market will bounce around between 6550 and 6650 in the short-term, but ultimately could very well break above 6650 and head to the 6750 level next. We do favor the upside overall.
ftse
The GBP/USD pair continues to find support just above the 1.50 level, but quite frankly has not broken out high enough for us to start buying calls. We need to clear the 1.5275 level in order to feel comfortable buying calls, and that move should send us looking for the 1.55 handle. We have no interest in buying puts until we get below the 1.50 handle, which of course is massively supportive on both the daily chart and longer-term charts.
Silver continues to bang against the $18 handle, showing real signs of strength going forward. If we can get a daily close above the $18 handle, we believe that this market then goes to the $19 handle, and perhaps the $20 handle after that. Pullbacks at this point in time should offer call buying opportunities closer to the $17 level, which we see as very supportive.