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ICYMI, the FTSE 100 index recently broke through its double bottom neckline!

I’m seeing signs of a pullback and an opportunity for more buyers to join the rally.

Do you think these support levels would hold?

FTSE 100 Index (UK100): 4-hour

FTSE 100 Index (UK100) 4-hour Chart

FTSE 100 Index (UK100) 4-hour Chart

Missed that neckline break? Don’t fret!

If you’re bullish on U.K. equities, you might have another chance to hop in the climb since the index is pulling back to nearby support levels.

The handy-dandy Fib tool shows that the 38.2% level lines up with the broken resistance zone and is also right around the dynamic support at the moving averages.

A bullish moving average crossover looks imminent, as the gap between the 100 SMA and 200 SMA is getting smaller. If this pushes through, more buyers could join in and allow the rally to resume.

A larger pullback could still find support at the 50% level closer to the key 7,000 mark or the 61.8% Fib near 6,900. Stochastic has a bit more ground to cover before reaching the oversold area to signal exhaustion among sellers, after all.

If any of the Fib levels are able to keep losses in check, the FTSE 100 index could rebound to the swing high just past 7,200 or higher.

Of course we’ve got the BOE monetary policy decision today to watch out for, as this would likely have a major impact on the U.K. stock market.

Some say that the U.K. central bank might be bracing for a larger 0.75% hike, but others think that most policymakers would opt to stay cautious with a 0.50% increase in rates.

Will BOE Governor Bailey and his fellow MPC members rely on the government’s fiscal plans to keep inflationary pressures in check?

Or will the central bank step up its tightening game and shore up investor confidence in the U.K. market?

In any case, watch out for additional volatility on the FTSE 100 during the event!

This content is strictly for informational purposes only and does not constitute as investment advice. Trading any financial market involves risk. Please read our Risk Disclosure to make sure you understand the risks involved.