Current trend

London's leading FTSE 100 index is trading at 8186.0, supported by a correction in the domestic bond market.

There are just over two weeks left before the Bank of England's monetary policy meeting, at which a decision on the interest rate will be made, and given the positive inflation data presented today, the regulator may move on to easing monetary parameters. The annual Consumer Price Index was 2.0% for the second month in a row, and the Core CPI excluding Fuel and Food was 3.5%, indicating the effectiveness of tight monetary policy, which contributed to a return to the target range of 1.5-2.0%, which the Bank of England designated last year.

Meanwhile, yields across the UK debt portfolio continue to fall, supporting the FTSE 100, with the 10-year bonds trading at 4.087%, down from last week's 4.159%, the 20-year bonds falling to 4.536% from 4.615%, and 30-year bonds — to 4.600% from 4.664%.

The growth leaders in the index are B&M European Value Retail SA ( 4.34%), JD Sports Fashion Plc. ( 3.53%), DS Smith Plc. ( 3.45%), Marks and Spencer Group Plc. ( 3.13%).

Among the leaders of the decline are Burberry Group Plc. (–5.30%), Severn Trent Plc. (–4.81%), United Utilities Group Plc. (–3.67%).

Support and resistance

On the daily chart, quotes remain above the support line of the side channel 8300.0–8100.0.

Technical indicators are in a state of uncertainty and are not giving a clear signal yet: the EMA fluctuation range on the Alligator indicator remains quite narrow, and the AO histogram forms new corrective bars, reversing towards growth.

Support levels: 8135.0, 7965.0.

Resistance levels: 8255.0, 8445.0.

Trading tips

If the index continues growing, and the price consolidates above the resistance at 8255.0, long positions with a target of 8445.0 and stop-loss of 8180.0 will be relevant. Implementation time: 7 days and more.

If the asset reverses and continues declining, and the price consolidates below 8135.0, short positions can be opened with the target at 7965.0. Stop-loss — 8200.0.