The FTSE traded 0.15% higher in a lackluster session on Friday. In the UK, parliament’s efforts to avoid a hard Brexit persist and hold back PM Johnson’s attempt to push for a general election. Separately on economic data, China released weak exports data over the weekend which may translate into a dampened mood in today’s session. Moreover, The UK publishes trade balance, GDP and manufacturing production data all of which should determine the pound’s direction which normally opposes that of the FTSE’s which benefits from a lower domestic currency. Apart from the data, expect Brexit developments and trade headlines to be the key drivers of price action.
The FTSE barely rose higher as it gained 11 points to end at 7282 on Friday. The price held above the support at 7235 however failed to trade above the 7300 level. Look for a move above this level to indicate buying pressure with a break above the resistance at 7315 required to reinforce the FTSE’s bullish view and target the resistance at 7345 followed by 7380. Meanwhile, Look to the 20-period MA near 7260 to provide near-term direction for the day as a move below this level would indicate selling pressure while a decline below the support at 7235 may suggest further downside to come and would lead the FTSE towards the support at 7200 followed by 7180.