The FTSE ran into some resistance today around the 6340 level after 3 days of consecutive gains. The market has been trending higher since the 29th September when it formed a double bottom in the 5860 region.
The move into the European close yesterday, and more obviously today, was bearish with selling showing on the H1 candles at 16:00 as traders took some money off the table looking to lock in profits on this rally. This would be logical heading into tomorrow’s MPC meeting where the 9 members will meet to adjust monetary policy.
The official bank rate is likely to be held constant at 0.5%, however the voting of the members may give the best hints to the time frame for the first interest rate hike. The voting is expected to be the same as the last meeting at 8-1 but any more than a single dissenter may cause a hawkish shock putting downward pressure on the FTSE.
The first support may come in just below the 23.6 fibonacci retracement around yesterday’s lows of 6225. If this fails to hold then a moved down to 6120 is very possible which coincides with a 50% fib retracement.