Quote from Nick on 27th March 2019, 10:43 am

27th March 2019

The pound neared a fresh 22-month high against the euro after Theresa May's Brexit deal was given a glimmer of hope by Eurosceptic MPs. Influential European Research Group chairman Jacob Rees-Mogg boosted hopes of a third vote on her deal squeezing through the House of Commons after signalling his support, reviving sterling's rally on currency markets. His backing came as speculation swirled that the prime minister will attempt to win the backing of the Eurosceptic wing of the Conservative Party by announcing a resignation date tomorrow afternoon ahead of a series of indicative votes that will decide the fate of Brexit.

The pound enjoyed strong gains against the euro and dollar amid hopes that MPs could back a quick resolution to the Brexit deadlock. Sterling jumped as much as 0.8pc versus the euro to €1.1738, just below the 22-month high it hit earlier this month. Its gains cooled in afternoon trading after the DUP said that it preferred a long delay to Brexit over the "prison" of the Government's Withdrawal Agreement.

The FTSE 100 lagged its rivals, advancing 18.71 points to 7,196.29. The index was weighed down by sterling rallying back towards a 22-month high versus the euro, and sharp falls for cruise ship operator Carnival and plumbing giant Ferguson.

May’s Brexit Deal Finds New Friends

U.K. Prime Minister Theresa May saw signs that her beleaguered Brexit deal might be winning support, just as Parliament began work to design a rival divorce plan. On Tuesday morning, Jacob Rees-Mogg, chairman of the pro-Brexit caucus in May’s Conservative party, said that while he didn’t like her deal, it was better than staying in the European Union. It's a break for May, but the question is whether it will be enough, or too little, too late. Under the terms set out by the EU at a summit in Brussels, she has until Friday to get her deal passed.

Stocks Rise, Apple Falls

The S&P 500 Index gained for the first time in three sessions, getting a boost from technology shares. Though, a patent ruling against Apple pushed the iPhone maker lower, and weighed on benchmarks. The yield on benchmark U.S. bonds rose after a two-day plunge, although the spread between three-month and 10-year rates remained in negative territory. The greenback erased its monthly drop, and the Japanese yen led losses in haven currencies. Gold retreated.

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FTSE 100 Trading Signals, Forecast and Prediction

We had a bit of a dip yesterday off the 7220 area but the bulls fought back at 7185 suggesting that there is still some desire to buy the markets after Fridays sell off last week. As such, I am looking at buying the dip this morning, and I am thinking that we will see a dip down to the 7200 support initially. We are at the 7228 resistance level as I write this where we have the 2hour coral and also the 200ema on the 30min. With yesterdays official close at 7196 we may well see a bit of a gap close before the bulls attempt a charge to 7250 where there is the next key resistance area.

[caption id="attachment_14686" align="aligncenter" width="821"] FTSE 100 Trading Signals, Forecast and Prediction[/caption]

7250 has R2 and also the key fib for today. If the bulls can break above this area then a test of the 7300 previous support area looks likely and the immediate threat of a decline below 7150 diminishes.

That said, if the bears break below 7196 today then a drop down 7156 where we have the key fib looks likely. We also have the 20 day Raff channel bottom here, and also the 10 day at 7144. I feel that this area will hold for the time being, as a break of this gets things pretty bearish again. Of course, developments in the Brexit area could scupper the best laid plans, so keeping an eye on the developments.

The S&P found decent support at the 2807 2 hour support yesterday following the drop off 2830 (bit strange that it shot up there then quickly retraced though). If that lower support holds then a rise towards the 2843 resistance level looks likely.

So, for the FTSE I am looking at a bit of a dip and rise playing out today.

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