Market Analysis: Trials for the UK Stock Market Continue

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Yesterday, the head of the Bank of England, Andrew Bailey, spoke about the need to complete the work on suppressing inflation, which is now higher than in any other major country in the West. Market participants expect that at the next meeting of the Bank of England (it will be held on August 3) a new increase in interest rates will be announced.

Bailey's last words boosted the value of the pound, which set a year high against the US dollar this morning. On the other hand, the stock market is dominated by negativity. The price of the FTSE 100 index is near the low of the year, while providing evidence of bear dominance for a long time:

→ level 7,680 has ceased to be a support, and has already worked as a resistance;
→ the level of 7,450 has ceased to be a support, and, perhaps, will continue to provide resistance;
→ having reached support around the level of 7,230, the price has not yet shown signs of a confident recovery over the past four trading sessions.

This suggests that selling pressure is present and could push the FTSE 100 price down to the low of the year that was set on March 20th.

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