fbGB100 Forecast | Improving data bullish for GB100 | IFCM

Technical Analysis GB100 : 2020-09-15

Recommendation for GB 100 Index:

Buy
Strong SellSellNeutralBuyStrong Buy

Above 6081.11

Buy Stop

Below 5780.24

Stop Loss

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Senior Analytical Expert
Articles 1590
IndicatorValueSignal
RSI Neutral
MACD Buy
Donchian Channel Buy
MA(100) Sell
Fractals Neutral
Parabolic SAR Buy

Chart Analysis

IFC Markets Tech Analysis

On the daily timeframe the GB100: D1 is testing the 100-day moving average MA(100) which has leveled off. We believe the bullish momentum will continue after the price breaches above the upper boundary of Donchian channel at 6081.11. A level above this can be used as an entry point for placing a pending order to buy. The stop loss can be placed below 5780.24. After placing the order, the stop loss is to be moved every day to the next fractal low, following Parabolic signals. Thus, we are changing the expected profit/loss ratio to the breakeven point. If the price meets the stop loss level (5780.24) without reaching the order (6081.11), we recommend cancelling the order: the market has undergone internal changes which were not taken into account

Fundamental Analysis

UK economic reports were mostly positive recently. Will the GB100 rebound continue?

UK economic data in the last couple of weeks were not as bad as feared on balance. While trade surplus declined a bit more than expected in July, the declines in both industrial and manufacturing production were less than forecast. And the GDP growth was in line with expectations. Thus, the trade surplus declined to £1.1 billion in July from £3.9 when a decline to £1.2 billion was expected. And the industrial and manufacturing productions declined 7.8% and 9.4% over year in July when 8.7% and 10.8% drops where forecast. At the same time the UK economy grew by 6.6% in July 2020, the third consecutive monthly increase. Improving data are bullish for GB100.

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