Looking at the upcoming Thursday session, it is apparent that the only real announcement of interest will be the Bank of England interest-rate decision. That being the case, we could get a little bit of volatility in the pound and the FTSE, and as a result is are to the markets that we are paying the most attention to.
The GBP/USD pair tried to rally during the course of the day on Wednesday, but struggled at the 1.52 level in order to form a bit of a shooting star. Because of this, we feel that the market will continue to grind around and perhaps head back down to the 1.50 handle, an area that has been massively supportive. A break below the bottom of the candle for the Wednesday session, we would be put buyers. As far as going higher is concerned, we would need to clear the 1.53 level and then at that point time believe that the market goes to the 1.55 handle.
The FTSE fell during the course of the session on Wednesday, as the 6900 level offered resistance yet again. However, the 6800 level offered support, so appears that we are trying to build up enough momentum to break out. On a move above the 6900 level, we would be buyers of calls as it would show the next leg higher.
Silver markets tried to break higher during the course of the day on Wednesday, but found the $17.50 level to be resistive yet again, forming a shooting star. This is the second shooting star in a row and as a result it appears of the market isn’t ready to quite breakout yet. With that we are buyers of puts on short-term charts that show signs of resistance but we recognize that the $17 level below is probably support.