{"id":99647,"date":"2016-12-16T06:39:23","date_gmt":"2016-12-16T11:39:23","guid":{"rendered":"http:\/\/countingpips.com\/?p=99647"},"modified":"2016-12-16T06:39:23","modified_gmt":"2016-12-16T11:39:23","slug":"gb100-technical-analysis-continued-positive-trend-may-lift-uk-market","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/forex\/2016\/12\/gb100-technical-analysis-continued-positive-trend-may-lift-uk-market\/","title":{"rendered":"GB100: Technical Analysis – Continued positive trend may lift UK market"},"content":{"rendered":"
December 16, 2016<\/div>
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By IFCMarkets<\/a><\/p>\n

Continued positive trend may lift UK market<\/strong><\/p>\n

UK economy has performed better than widely expected after Brexit vote. Will the GB 100<\/a> index continue rising?<\/p>\n

The Bank of England left the interest rate unchanged at 0.25% at its meeting on Thursday following the decision by the Federal Reserve to hike rates 0.25 percentage point to the range 0.5 to 0.75 percent on Wednesday. The second reading of GDP indicated the British economy slowed slightly in the third quarter growing at the rate 0.5% on quarter in the three months to September down from a 0.7% expansion in the previous period. The decline was mainly due to lower domestic demand which was offset by increase in foreign trade. Recent sales data showed retail sales in November increased a healthy 5.9% compared with the rate same month last year, though less than the 7.2% in the previous month. At the same time last Inflation report indicated headline inflation rose to 1.2% in November from 0.9% in October as consumer prices increased 0.2% monthly from 0.1% growth in October. As higher inflation points to improved demand the labor report in turn showed average earnings including bonus rose 2.5% in October from upwardly revised 2.4% the previous month. With data after Brexit indicating the UK economy fared much better in the aftermath of the referendum decision to leave the European Union, the uncertainty over results of exit negotiations poses the most downside risk for British economy which has been offset by positive effects of Pound depreciation. On December 23 the final reading of Q3 GDP will be published, no changes are expected. And on December 23 GfK Consumer confidence index will be reported, a slight improvement is expected.<\/p>\n

\"FTSEE100\"<\/p>\n

On the daily chart GB100: D1<\/b> has been rising bouncing off the 50-day moving average MA(50) after breaching above the resistance line of the downtrend.<\/p>\n