FTSE 100, DAX 40 Technical Outlook

• Dax 40 futures rejected by psychological resistance at 13000
• GBP/USD makes modest gains after the official appointment of new UK Prime Minister Rishi Sunak
• FTSE 100 slides despite positive earnings from UBS

GBP/USD has made modest gains in today’s session after Rishi Sunak was appointed as the new British prime minister. With the Conservative party leader reiterating his commitment to restore economic stability and confidence, a slight recovery in the Sterling and failure to push through 7000 drove FTSE 100 lower.

UK FTSE 100 Technical Analysis

With the 200-week MA (moving average) providing short-term support at 6950, the 7000 psychological level has formed a firm barrier of resistance that has continued to restrict the upside move.

Chart prepared byTammy Da Costausing TradingView

On the daily chart, the zone between 7000 and 7020 has proved to be an important zone of technical confluency. As prices continue to look for a distinctive break, the next level of resistance could hold at 7092 with a move higher drawing attention to another big level of psychological resistance at 7200.

FTSE 100 Daily Chart

Chart prepared byTammy Da Costausing TradingView

FTSE 100 Price Levels

DAX 40 Technical Analysis

For the German Dax 40, the same levels of support and resistance discussed in yesterday’s analysis continue to hold. After a brief temporary retest of 13000, failure to maintain bullish momentum above this level allowed sellers to drive price action lower. With Dax futures currently trading around the 12847 handle, additional selling pressure could see the 12700-handle coming back into play.

DAX 40 Daily Chart

Chart prepared byTammy Da Costausing TradingView

German Dax Price Levels

— Written by Tammy Da Costa, Analyst for DailyFX.com

Contact and follow Tammy on Twitter: @Tams707