The index confirmed a break – inverse head and shoulder breakout –yesterday and the breakout is pretty much a done deal on the weekly time frame as well.
This opens up doors for 7300 (breakout target), which as of now looks like a farfetched idea. However, the odds of a BOE rate cut have gone through the roof following Carney’s dovish talk.
The inverse head and shoulder target could be met if the BOE comes out with its program. However, all this appears a farfetched idea as of now.
In the short-run invalidation is seen only if prices see a day end closing below 6400 (neckline support).