The FTSE 100 has recovered from last week's 10,583 low but now faces a resistance band stretching to 10,745 that could cap further gains. The index stays technically bullish while it holds above 10,568, and a break above resistance could open the door toward 10,850. The rebound comes as sterling eases ahead of Thursday's Bank of England rate decision.
The FTSE 100 has clawed back ground after dropping to a 10,583 low last week. Resistance now looms at 10,686, part of a wider band running up to the early-July high of 10,745, which is expected to cap the upside early this week.
FTSE 100 probes key resistance
The index's drop through its late-August and early-September lows at 10,686 took it to last week's 10,583 low before it regained some lost ground. Because of inverse polarity, that former support now acts as a resistance level capping the upside. If the index overcomes this band, the 10,850 region may be revisited.
Support sits between last week's 10,583 low, the 24 July trough at 10,578 and the 25 May-to-25 June highs at 10,573-to-10,568. The short-term outlook stays bullish while the index holds above 10,568. The medium-term view remains bullish while it trades above the 15 June high at 10,568.
Sterling slips ahead of Bank of England decision
The pound eased to $1.3486 ahead of Thursday's Bank of England policy decision, with rates expected to remain at 3.75% though policymakers could once again deliver a split vote. Markets separately price an 86% probability of a 25-basis-point Fed rate increase on Wednesday. It would be the Fed's first hike since mid-2023. The 10-year Treasury yield held around 4.973% after two-year yields surged last week.
Source: IG
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