Based on our latest calculations, we expect the United Kingdom’s benchmark stock index to decline amid rising Brexit uncertainty coupled with Domestic political uncertainties. Since May this year, the UK100 (CFD of FTSE100) has been consolidating in a tight range lacking direction.
As economic growth slows in the United Kingdom along with housing market activity, we expect the index to bear the brunt. However, the index is likely to find some support from a declining pound against the USD.
Trade idea:
Sell FTSE 100 or UK100 at the current rate of 7680 (UK100) with a target of 7000 area and the stop loss around 7920 area.
