While the GBPUSD is getting hammered this morning, the FTSE 100 (FXCM: UK100) is up by 1.169% at the time of writing.

The FTSE 100 tends to be detached from the overall conditions present in the U.K. economy with the bulk of FTSE 100 earnings sourced from outside Britain.

Short-Term BullishTrendAbove Friday’s Low of 5913

For now the short-term trend remains bullish above Friday’s low of 5913 and I see no reason for it to turn bearish so long as this low continues to be respected. On a break to last week’s high of 6066, the FTSE 100 may reach its February high of 6130.

Traders looking for a better risk/reward ratio will probably use a pullback to the 5980 to 5950 range as an opportunity to turn bullish.

If the 5913 low holds as a support and the FTSE 100 reaches last week’s high of 6066, the risk will be 66 points vs. a potential gain of 87 points. This gives a risk/reward ratio of 1.3 times the risk or 2.3 times the risk depending on

whether the index reaches its February high.

The price would need to break Friday’s low of 5913 to turn bearish, and in this alternative scenario, price may reach the February 17 low of 5864.

Chicago PMI is on deck this afternoon and is expected to improve from -0.22 to -0.10, while Markit U.S. PMI is expected to improve from 52.4 to 52.5. Better readings than expected are needed to keep the bulls happy.

See the DailyFX Analysts’ 1Q forecasts for the Dollar, Euro, Pound, Equities and Gold

FTSE 100 | FXCM: UK100

Created with Marketscope/Trading Station II; prepared by Alejandro Zambrano