FTSE 100 Forecast: Break Above 10,900 Targets 11,250

The latest CBI Service Sector Survey showed that sentiment among business and professional services firms improved from –46.0% to –10.0% in the three months to August. However, business volumes remained negative at –19.0%, marking the twenty-second consecutive month of contraction.

Profitability improved from –43.0% to –21.0%, while the employment balance rose from –27.0% to –16.0%. At the same time, selling-price growth accelerated from 6.0% to 15.0%. Companies still expect to reduce investment in land and buildings, while planned cuts to vehicles, plant and machinery have become less severe.

UK government bond yields eased in the previous session as expectations for the next Bank of England rate increase shifted into 2027. Nevertheless, the 10-year gilt yield remains close to 5.06%, while the 30-year yield is near 5.79%, keeping borrowing costs and fiscal risks in focus.

Early Friday gains were led by Melrose Industries Plc (+2.44%), Endeavour Mining Plc (+2.28%) and Fresnillo Plc (+1.74%). BAE Systems Plc (–1.43%), Sage Group Plc (–1.13%) and Kingfisher Plc (–1.12%) were among the weakest performers. Shell Plc and BP Plc advanced only slightly as Brent crude remained below 90.00, although supply risks surrounding the Strait of Hormuz continue to influence the oil market outlook.

Warsh’s speech may set the direction for global risk appetite before the weekly close. The same uncertainty over US monetary policy is also shaping the latest S&P 500 forecast.

Support and Resistance Levels

On the daily chart, the FTSE 100 is moving towards the upper boundary of a broad ascending channel with dynamic limits around 11500.0–10600.0.

Technical indicators maintain a tentative buy signal. The Alligator moving averages are gradually widening, while the Awesome Oscillator remains in positive territory but is forming corrective bars.

Support levels: 10700.0, 10330.0.

Resistance levels: 10900.0, 11250.0.

FTSE 100 Trading Scenarios and Price Forecast

Long positions may be considered after the index rises and consolidates above 10900.0, with a target at 11250.0 and a stop-loss at 10700.0. Time horizon: seven days or more.

Short positions may be considered after a decline and consolidation below 10700.0, with a target at 10330.0 and a stop-loss at 10900.0.

Conclusion: The short-term outlook remains cautiously bullish while the FTSE 100 holds above 10700.0. A confirmed break above 10900.0 would support a move towards 11250.0, while a loss of 10700.0 could trigger a deeper correction towards 10330.0.