Is it that time for the FTSE 100 to fall again? Data earlier highlighted the UK GDP grew slightly, but is that enough?

FTSE 100 has been rallying over the last few days, currently trading at around 7,558. The UK GDP data released earlier this morning showed that the economy grew marginally, and even though that is a positive, it may still not be enough to keep the index afloat. Based on recent news, the Bank of England seems like it may continue with its interest rate hikes. This in theory would strengthen the pound but in turn weaken the FTSE. Of course, this is not guaranteed. However, let’s look at the potential support and resistance levels. Support now sits at 7,544 followed by is 7,535. A break below 7,535 could see the index slide lower towards trendline support of 7,530. As we can see on the 1 hourly timeframe, the index has been rallying within the channel drawn on the chart. Therefore, we may see a bounce off the trendline before a potential continuation lower. A bounce off the trendline may see a rise towards 7,550-7,560, if that was the case, further analysis would be required to assess the situation at the time. Looking at the technical indicators, MACD is negative and so is the RSI as it reads 32.