FTSE100 – Cable weakness stands in a way of correction

The overbought daily RSI and the bearish divergence on the money flow index suggest the index is poised for a correction to 6880 – 6806 levels.

However, a weak Sterling is standing in the way of correction.

Nevertheless, overbought indicators cannot be ignored for long and thus doors remain open for a move lower to 6880 levels.

In case, we see Sterling drop below yesterday’s low, the index could close-in on 7000 figure.